but here's a quick thought. The Fed can cut rates as much as it would like (hell, they're already negative in real terms) and it won't make a bit of difference as to whether we are moving into recession (btw - I think we're there already). The reason is simple - Americans can no longer fund their profligate spending by extracting equity from their homes. They can no longer prime the auto and credit card pumps through rising home prices. It doesn't matter if you make it cheaper for them to borrow, because they can't borrow anymore. The well is dry.
Ditto on a bullshit $300/family tax rebate (or whatever the final deal is). We are in for a long structural economic change that will take years to play out. Things are going to be pretty dismal until people readjust their habits to incorporate the new financial realities, like living reasonably within their means. That takes time.
Like 2010.
With that, I'm back to work.
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