How twitchy is the stock market?

There we were, enjoying a calm afternoon, erasing the memories of a crappy first week of 2008, and AT&T’s CEO singlehandedly goes and clobbers the stock market. The economy’s so bad, he said, that consumers aren’t paying their phone bills. Two hours later, -238 on the DOW.

Six weeks ago, the market probably would have rallied on the news in the confused delusion that all the bad news must be out by now. But the mood now is markedly different. The bad news just keeps a’coming. For example, Countrywide got clobbered on rumors it’ll do a bk.

The recession is here. No more maybes about it.