Leading, Lagging, and Making money

(In keeping with my suggestion, I'm going to post more and comment less.)
It's true GDP and CPI are lagging measures, and bond yields and stock markets are leading indicators of a recession. So what? No one makes any money predicting CPI numbers. We make money in the stock and bond markets. So debating whether there is an "official" US recession coming or not is a rather moot point. Given all of the data, leading and lagging, we have to predict the severity of the slow down and decide how it's going to affect future earnings of companies; the true long term determinant of stock prices.
I guess the difference is I see the credit problems being contained in the financial sector; the housing market has been slumping for about a year, the subprime fallout started in July/August, and here we are in Dec with few signs (leading or lagging) of systemic problems outside of the financial system. Thus I believe there will be a soft landing, and there will be profitable investments at the expense of those panickers crying, "the sky is falling!"
There have been financial crises in the past (LCTM, Barings, Orange County, LBO/junk bonds, etc.), and those who have coolly assessed the possible outcomes, to step in when the the future seemed bleak have made the most money. By the time we, as amateur investors, decide it's safe to buy something, the pros have already gained 20-30% on us.

So what if LIBOR rates are at all time highs or central banks are accepting MBS as collateral? How does that affect lulu? I still see women crowding Lulu stores trying to find the best sizes and styles, and walking out with $300 worth of tights... and I bet not one of them have heard of LIBOR or MBS. :)