Oh boy, here we go again, all doom and gloom about the economy…

Wall Street plunged Thursday, pulling the Dow Jones industrial average down more than 360 points as investors found themselves confronted by two uncomfortable prospects: an end to interest rate cuts and a slowing economy.

Mindful of a warning from the Federal Reserve Wednesday about inflation, the market nervously watched the price of oil, which passed $96 a barrel overnight for the first time before dipping on profit- taking. The Fed, which cut interest rates a quarter point, said in a statement that inflation remained a concern, and oil’s ascent to another record raised the possibility not only that the Fed might stop cutting rates, but that it might even consider raising them if inflation accelerates.

Meanwhile, Wall Street also had to contend with concerns about a slowing economy. A report from the Commerce Department indicated consumers scaled back their spending in September as worries mounted about a worsening housing market and further credit market turmoil. And a trade group reported that manufacturing in the U.S. grew in October at the weakest pace since March.

We all knew oil was going to hit $100 a barrel soon enough, so why are they all bent out of shape about that now? It’s not like they didn’t know it was coming. And what about the slowdown of the economy? Haven’t they noticed that the economy always slows down in the fall?

Today was just another example of hype affecting the economy rather than true economic factors. You’ll see. The market will rally in a day or two and no one will mention today’s drop or even reference it when that happens.

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