The Feds meetings minutes reveal the board is worried about a "prolonged and severe" recession, your opinion?

Question

http://news.yahoo.com/s/ap/20080408/ap_on_bi_ge/fed_minutes

Excerpt:

Even as the Fed battled in almost unprecedented fashion to stem a widening credit and housing slump, some members fretted over the possibility of a "prolonged and severe" economic downturn. It was in that environment that they voted — with two dissents — to cut its most important interest rate by three-quarters of a percentage point to 2.25 percent. That action capped the most aggressive Fed intervention in a quarter-century.

Some Fed policymakers thought that such a widening recession could not be ruled out given the "further restriction of credit availability and ongoing weakness in the housing market," according to the meeting minutes that were made public Tuesday.

Answer 1

I guess you should not have bought that new car unless you paid cash! HA!

Anyway, my opinion is that if a recession arrives it will be mild to moderate and not severe.

Answer 2

Yes we are in a recession. Look at the sky-rocketing prices of everything. The Fed is bailing out Wall St. investors never before has this happened. Not a good thing. We are suffering because the greedy oil/defense corps. bankers/brokers have sucked all of our hard earned savings and investments up. Now we have too little too late. Everybody conserve, save, pay down debt, go green, recycle, protect your resources because you are going to need them.

Answer 3

Which widening credit slump are they referring to - the Federal Government and their spend but don't tax program, or the ones the citizens have taken which actually somewhat resembles the poor judgement of the Feds. I.E. spend when you don't earn enough to pay your debtors.

Answer 4

Makes since everyone has tapped out their credit cards and many are near default on home loans and due to not drilling for oil everything is going up except wages, plus monetizing our debt made our money worthless than it was.



Get ready for the Great Depression Redux.

Answer 5

The meddling of the Federal Government will prolong any downturn. Capitalism has always had corrective downturns. FDR prolonged the great depression by a decade with his meddling. It took WWII to get us out of it.

Answer 6

Until employment gets back on track I don't see how this will help anyone except those that already have everything except more money.

Answer 7

This is what happens when you live on borrowed money. You live your life foot to mouth. The repo-man is always just one step behind you.