Investors are preparing to close out the last three trading days of 2008 with Wall Street's worst performance since Herbert Hoover was president.

The ongoing recession and global economic shock pummeled stocks this year, with the Dow Jones industrial average slumping 36.2 percent. That's the biggest drop since 1931 when the Great Depression sent stocks reeling 40.6 percent.

The Standard & Poor's 500 index is set to record the biggest drop since its creation in 1957. The index of America's biggest companies is down 40.9 percent for the year.

With these statistics ready to play out this week, it is little wonder why investors are all too happy to close the books on 2008. Analysts are already looking toward January as a crucial period for the market as it tries to recover some of the $7.3 trillion wiped from the Dow Jones Wilshire 5000 index, the broadest measure of U.S. stocks.

"It is hard to gauge a recovery because there's so many things out there that are interactive with each other," said Scott Fullman, director of derivatives investment strategy for WJB Capital Group in New York. "Nothing is in a vacuum. Anybody who is managing money has to be on the cautious side for at least the first six months of 2009."

He said many analysts are jumping past this week and focusing on next month, especially with Barack Obama set to be sworn in as president on Jan. 20. There is hope that the new administration will deliver another stimulus package, which along with December's interest rate cuts, might help quell the financial crisis.

Trading is expected to remain volatile with many market participants on the sidelines during the holiday-shortened week, but that doesn't mean investors won't be kept busy. With no Santa Claus rally last week, economic data slated for the coming days could sway the market's mood going into 2009.

Investors will be awaiting details about how retailers fared in the post-Christmas sales period, especially since consumer spending drives more than two-thirds of the U.S. economy. The main question is if bargain prices at the malls will be enough to rescue retailers from a bleak holiday shopping season.

Meanwhile, another gauge of how Americans feel about spending money will be released on Tuesday. The Conference Board will issue its December index of consumer confidence, which is expected to rise to a reading of 45.2 for this month, up slightly from 44.9 in November.

The Labor Department will report on weekly jobless claims Wednesday, after a 26-year high of 586,000 initial filings in the week ended Dec. 20.

But the most anticipated economic data will be delivered Friday when investors get a fresh reading on the manufacturing sector. The Institute for Supply Management releases its December survey of purchasing managers.

The index is expected to show a reading of 35.5, down from November's 36.2, according to economists polled by Thomson Reuters. A reading above 50 points to expansion, while a reading below 50 shows a contraction.

There is little in the way of corporate news slated. Though, the final week of the year - when volume is slow and many money managers are on vacation - is often a time when companies slip through lower quarterly forecasts.

Investors were still waiting word if GMAC Financial Services, the financing arm of General Motors Corp., will be eligible for a government bailout. GMAC received the Federal Reserve's approval to become a bank holding company last week, but that was contingent on putting into place a complicated debt-for-equity exchange by 11:59 p.m. EST Friday.

That deadline passed with no word from the company. Analysts have speculated that if GMAC doesn't obtain financial help it would have to file for bankruptcy protection or shut down, which would be a serious blow to parent GM's own chances for survival.

Both General Motors and Chrysler LLC on Monday will receive the first part of the $13.4 billion in emergency loans from the government. Each will receive about $4 billion, then receive the second payment of $5.4 billion on Jan. 16. GM gets a third installment of $4 billion on Feb. 17.

Ford Motor Co. did not participate in the government rescue plan.

Copyright 2008 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed

Ten years ago, Europe launched its grand experiment with a shared currency - and watched it plunge in value before recovering.

But as the anniversary approaches of the Jan. 1, 1999, arrival of the euro, economists say the new currency is finally fulfilling its promise as a way to lower borrowing costs, ease trade and tourism, boost growth and strengthen the European community.

And doing it amid a global financial crisis that, for the moment, underlines the safety in numbers that comes from joining one, big currency.

"After 10 years it has truly created a zone of security and stability," French Finance Minister Christine Lagarde said in mid-December. "From all these points of view, the euro has in fact proven wrong the forecasts some made against the euro 10 years ago."

When it was launched for non-cash purposes in 1999, just 11 countries were on board - Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. Notes and coins were added on Jan. 1, 2002, and the original 11 have been joined by Cyprus, Greece, Malta and Slovenia, with Slovakia slated to join on Jan. 1, bringing the total to 16. Now, some people in longtime holdouts such as Sweden and even strongly euro-skeptic Britain are beginning to reconsider the question.

Smaller countries have seen their currencies collapse in value and been forced to ask the International Monetary Fund for bailouts.

Otmar Issing, a former board member of the European Central Bank, said the euro's appeal has been its ability to provide a sense of stability and shelter from the storm of global crises. The bank, created specifically to oversee the euro, has taken a strong anti-inflationary stance that mirrors that of its chief predecessor, Germany's Bundesbank central bank.

Biggest Bums Of 2008

About Robert Lenzner

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The biggest bum of 2008 (and for decades prior) is Bernard Madoff, whose knavish duplicity betrayed the trust of small and large investors across the globe. The Madoff Ponzi scheme is a criminal act that has decimated important foundations like the Picower and destroyed the wealth of widows and orphans.

Our bums list should include those conspirators in this scheme (family or otherwise), the handful of investors who claim they knew it was a scam but did not inform the government (they know who they are), the greedy fools behind the feeder funds that facilitated Bernie at his cheating (our sympathy to the family of Rene-Thierry Magon de la Villehuchet, the investment manager who lost more than $1 billion with Madoff and took his own life two days before Christmas).

hat should sit squarely on Madoff's conscience, if he has one. May the smirk on Madoff's face be replaced by the realization he is scoundrel and rogue No. 1 of our age.

A special bum designation is in order for the Securities and Exchange Commission officials who for decades did not bear down in their investigation to expose Madoff's roguish exploitation.

The main lesson from the bum Madoff: Do not keep all your investment eggs in the same basket, or in one investment technique, as it is far too risky. Diversify your investment managers and diversify the investment techniques they use and strategies they pursue.

Make sure your assets are held in your name by a fully insured custodian and that you get immediate transaction notices from your custodian, instead of the monthly reports that Madoff sent, which everyone believes are fiction.

Online retailer Amazon.com Inc. called this holiday season its "best ever," saying Friday that it saw a 17 percent increase in orders on its busiest day - a rare piece of good news in a season that has been far from merry for most retailers, including online businesses.

Amazon customers ordered more than 6.3 million items on Dec. 15, compared with roughly 5.4 million on its peak day last year, the company said. It shipped more than 5.6 million products on its best day, a 44 percent rise over 2007, when it shipped about 3.9 million on its busiest day.

The company did not provide dollar figures and wouldn't say whether the average value of orders had changed, and the jumps it reported Friday are in line with increases Amazon has seen since it started releasing the figures in 2002.

Amazon's best-sellers included the Nintendo Wii game console, Samsung's 52-inch LCD HDTV and Apple Inc.'s iPod touch.

Analysts agreed Amazon's report was good news for the online shopping giant, but they were divided over whether the results indicate strength in online commerce in general.

Forrester Research analyst Sucharita Mulpuru said Amazon's experience shows the current economy is favoring discount retailers, both online and offline.

"The Amazon story doesn't surprise me because Amazon has always traditionally been a leader on price, and they're one of the first places consumers go when they're looking for things online," Mulpuru said. "In many ways they're like the Wal-Mart of the online world."

Wal-Mart is one of very few traditional retailers where revenue has risen this holiday season over last.

Holiday sales typically account for 30 percent to 50 percent of a retailer's annual total, but rising unemployment, home foreclosures, the stock market decline and other economic worries led many shoppers to slash their shopping budgets this year.

SpendingPulse - a division of MasterCard Advisors - said its preliminary data show that online sales fell 2.3 percent compared with the 2007 holiday season, while retail sales overall fell 5.5 percent to 8 percent, including sales of cars and gasoline. The decline was 2 percent to 4 percent when auto and gas sales are excluded.

Online shopping may have gotten a boost from winter storms during last two weeks before Christmas, which made travel to brick-and-mortar stores more difficult.

And, although Amazon's orders rose, the company didn't say whether orders were, on average, worth more or less than last year. Spokeswoman Sally Fouts said the company would release revenue results in its fourth-quarter earnings report, due in about a month.

But she said this was Amazon's "best season ever."

Orders to Amazon on the peak day of its holiday season have jumped in the double-digit percentage range for at least the past 5 years, according to data released by the Seattle, Wash.-based company since 2002. Last year, Amazon's orders spiked 35 percent to 5.4 million at their peak, from 4 million in 2006.

Stifel Nicolaus & Co. analyst Scott Devitt said online retailers' sales tend to grow much faster than those of brick-and-mortar retailers, but he said that difference narrowed this year. That's in part because shoppers tend to go to stores for necessities and online for discretionary purchases, he said. And in an economic downturn, consumers focus on their most-needed purchases and cut back on more frivolous items.

Devitt said Amazon benefited from a vast infrastructure that allows for faster, more reliable shipping than most of its online peers offer. He called Amazon's announcement an "extremely positive data point" and said the company is "uniquely positioned to do well in an environment like this."

That environment has left many retailers in a tough position. NPD Group senior retail analyst Marshal Cohen said they will be forced in coming weeks to take still more drastic measures to drive sales and raise whatever cash flow they can.

Amazon's shares gained 34 cents to close Friday at $51.78, a 0.7 percent rise.

AP Business Writer Lauren Shepherd contributed to this story from New York.

Copyright 2008 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed

Re-evaluating Your Retirement Game Plan

After a miserable year in the market, investors need to assess how the turmoil will impact their retirement plans.

Banks are issuing preferred stock with yields of 10% and higher. Nice yields, but don't get suckered into buying bad paper. Click here for Forbes-Lehmann Income Securities Investor.

In Pictures: 7 Steps To Fix Your Retirement

Remember when your broker pulled you aside and showed you that neat, reassuring table of data proving how you could retire before becoming an octogenarian?

Rip it up--if you're planning on retiring anytime soon.

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The past decade's bull run lulled most people into thinking financial security during retirement was all but certain. Hold a diversified portfolio of stocks and boost your allocation to bonds as you near retirement age and you would be able to coast into your golden years. But then the financial collapse of 2008 hit, wreaking havoc on the best-laid financial plans.

Year-to-date, the stock market is down 40% and it's back to the drawing board for boomers and their advisers when it comes to retirement. With that in mind, Forbes.com called up financial planners, wealth managers and accountants to get a sense of what they're telling their clients as they navigate these tough times. The bottom line is that to secure a worry-free retirement, it's critical to re-assess and re-calculate your retirement strategy right now, after the storm.

In Pictures: 7 Steps To Fix Your Retirement

First, determine your retirement income needs. How much are you going to spend every year when you do retire? What are your expenses going to be? Once you arrive at a number, you will have a sense of the resources you'll need in order to live out your golden years in comfort.

There are a couple schools of thought about how to determine that magic number. It's common to discuss desired annual retirement income as a percentage of your current income. Depending on who you're seeking advice from, they may say it's anywhere from 60% to 80%.

They fell from some of the most powerful positions on earth.

In Pictures: 11 Top Bosses Who Got The Boot in 2008

The bloodletting in the c-suite started in 2007. It still hasn't stopped.

Another year goes by and more chief executives get the ax--probably more than in any previous year. People shook their heads when Charles Prince III at Citigroup (nyse: C - news - people ) and Stanley O'Neal at Merrill Lynch (nyse: MER - news - people ) got the boot in 2007. Now it look like they were lucky. They got out just in time.

Martin Sullivan of American International Group (nyse: AIG - news - people ) (let go in June), Kerry Killinger at Washington Mutual (nyse: WM - news - people ) (September) and Richard Fuld of Lehman Brothers (nyse: LEHMQ - news - people ) (leaving next month) are among the biggest names to be shown the door as a result of the economic crisis.

Their distinguished company includes James Cayne of the now-deceased Bear Stearns and Richard Syron and Daniel Mudd, the former CEOs of the mortgage buyers Freddie Mac (nyse: FRE - news - people ) and Fannie Mae (nyse: FNM - news - people ).

"There are two kinds of CEO firings," says Noel Tichy, a professor at the Ross School of Business at the University of Michigan. "There are the crooks and there are the incompetents." This year the biggest departing names all fell into a gray area in between.

None was as corrupt as the executives embroiled in the infamous Enron and Tyco scandals of a decade ago, but you couldn't just say they were simply stupid either. CEOs in the financial services industry discovered that they had allowed their companies to take suicidal risks with other people's money based on bad or staggeringly incomplete information. Many of them have paid with their jobs.

In Pictures: 11 Top Bosses Who Got The Boot in 2008

Despite their prominence, these headline names compose just a small fraction of the 1,361 U.S. CEOs who left their jobs this year through November. That's up from 1,356 in all 12 months of last year. The final 2008 number may prove to be a record, beating the previous one of 1,478 set in 2006, according to data collected by the management consulting firm Challenger, Gray & Christmas.

In Pictures: The 10 Worst States To Be Sick And Poor

Bernadette Sheridan, a doctor at Grace Family Medicine in Canarsie, Brooklyn, has stopped seeing patients covered only by Medicaid, the Federal-State partnership that pays for medical care for the poorest Americans.

Why? Sometimes Sheridan didn't get paid, and when she did, it took forever. New York takes 140 days to process most claims, compared with 41 for South Carolina, according to AthenaHealth (nasdaq: ATHN - news - people ), a company that helps doctors get paid. But the worst thing was that all the specialists to whom she wanted to refer patients had already stopped taking Medicaid. If a woman showed up with a lump in her breast, Sheridan had to just send the patient to a clinic or emergency room.

In Pictures: The 10 Worst States To Be Sick And Poor

What scares her most, she says, is that the many people with families who suffer from chronic illnesses are "only a pink slip away" from a hard-to-navigate system that she calls "a horror."

Medicaid is the primary medical insurance for 55 million Americans. Another 47 million are uninsured and finding ways to cover these people is expected to be a big point of focus for the administration of President-elect Barack Obama.

But what you get varies widely depending on where you are. Unlike Medicare, which takes care of senior citizens, Medicaid is a patchwork of 51 different state programs that get federal funds of between 50 cents and 77 cents for every taxpayer dollar they spend.

Why Tech Can't Cure Medical Inflation

Computers in medicine aren't a cure. They might even make the system sicker.

Whenever President-elect Obama is asked how he'll pay for his ambitious health care reform plans, he invariably talks about the $80 billion in annual savings he'll get from bringing computerized recordkeeping to doctors' offices and hospitals.

If only that were true. While there are benefits that might be had from using computers more widely in medicine, doing so won't save us any money and, in fact, will likely make things more expensive. There's even a chance that the quality of care might get worse along the way.

That's probably counterintuitive to anyone contemplating the wall of file drawers in a typical doctor's office. Medicine clearly has yet to join the rest of the world in going digital; no wonder, the thought goes, that U.S. health care is so expensive.

But while paper records certainly have their inconveniences--filling out your thousandth questionnaire, say--they play a very minor role in galloping health care inflation.

Instead, the heart of the problem is the U.S. fee-for-service system, in which doctors get paid to do things to people. The more technical and invasive the procedure, the more money they make. Doctors have responded in the expected Pavlovian manner, collectively shifting away from basic primary care toward expensive specializations that run up costs without necessarily improving medical outcomes.

As any chief information officer can tell you, adding computers to this sort of inefficient process only makes the inefficiency happen more quickly.

Much of what doctors or policymakers know about technology comes from vendors, who are busy guilt-tripping the medical sector about being slow to get with it. But more quietly, health care economists have been studying the actual impact of these systems. Their findings should disturb those who look to information technology for an easy fix.