War rally loses sight of deeper risks

"The debt burden at the corporate level may have peaked," said William W. Priest, a managing partner at Steinberg Priest & Sloane Capital Management in New York. "But at the consumer level it's been masked by rising home values. I think unemployment at the end of this year will be higher than it is today. We are going to struggle most of this year with the fact that final demand will be below most expectations; corporate earnings will be up but probably below expectations."