Global stock market outlook in 2008

The global stock market in 2007 faces many problems, from the US sub-prime mortgage crisis to the oil price hike. It brings fear to investors all around the world. Many people worry that US economy is heading into recession. What will happen to the global stock market in 2008? Is it over for the US credit crisis?
The worst is yet to come. There will be plenty of asset write-downs in the first quarter of 2008. There will also possibility of rising inflation due to oil price and lower consumer spending in US. The consumer spending is a lagged variable. It will probably reach its bottom at the first six month of 2008. I think there will be a recovery in the next six if the Federal Reserve acts correctly. The Federal Reserve board of governors is inexperienced, according to BCA Research. Donald Kohn is the only one who has the experience with financial crises. The last Fed cut in December shows this inexperience. US market will certainly affect other stock market around the world. Emerging market led by BRIC (Brazil, Russia, India, and China) will still growing high in 2008.