Economy Upgrade

My biggest concern is becoming a reality. We are in a recession and the stock market keeps experiencing low points day after day. Some economists say that Wall Street is close to its bottom; others disagree. The stock market is still volatile. One aspect that drives the stock market to fall is the consistent withdraw of many investors.
Credit risk is also hurting the economy and perceptions. Banks and other lenders have tightened their standards for credit approval and consumers are feeling the credit crunch. The credit market will play itself out before it can turn back around.
The Fed will have another interest rate cut next Tuesday. We don’t know how much the cut will be. Experts say it can be up to 1 full point. The lower interest will work as a cushion for our recession. The prime rate is 6% now. It will help borrowers with adjustable loans to reduce their monthly payment. Another Fed cut is less likely to pull us out of the depressed economy.
The U.S. dollar has also been dramatically depreciated over the past year. Based on today’s exchange rate, $1 = 7 Yuan and $1 = 0.6 Euro. That made the record low. We don’t know how long it will take for us to get out of the recession at this point. I hope we can pull our way out someday.

http://biz.yahoo.com/ap/080315/wall_main.html

http://biz.yahoo.com/ap/080315/fed_interest_rates.html