"Still" is the key word here.
IMO, since the summer, the mood of markets re. debt and the USD has reversed sharply. And that's global. The subprime mortgage debacle was just the trigger. As *all* credit markets recoil and U.S. wealth evaporates, the pressure to sell off assets across the board will become extremely hard to bear. Monetary policy is likely to slip (see the yield curve). This will continue feeding into itself and dragging things down.
As Krugman calls it, this is a Wile E. Coyote moment. That said, this is not to be confused with the collapse of capitalism. Call it a severe "correction" that will "downgrade" the position of the U.S. in the world economy.