Though London's current price-earnings ratio of 15 sounds quite reasonable, Norwich Union's Mr Lis points out that most past bear markets have ended with ratios in single figures.

ECONOMIST: How low could they go? | The

It would free up more revenue for the federal government, but it would cause local governments to bear the brunt of the cuts, Fitch points out.

FORBES: Public Finance Sector OK...For Now; Fitch Cautions About Medicaid Cuts