Dow down 130 points

It's the biggest two-day decline since March and market stories will say that inflation worries are to blame. Maybe there's some truth to that - labor costs rose three times higher than the government's previous estimate last quarter and that means companies might decide to raise their prices. That also means the Federal Reserve is not about to lower interest rates, which is what really gets stock markets in a lather. But with many of the world indexes trading within 97 percent of their 52-week highs (we're talking the Dow, Russell 1000, and MSCI World Index, to name a few), perhaps the inflation stuff is more of an excuse to unload than a reason to worry. Whatever. Socal homebuilders KB and Ryland were among local issues taking the biggest hits, no doubt in response to the National Association of Realtors again lowering its U.S. housing market forecast for the year.