KM, i apllaude your response toward the "recession" def. i am right there with you i
believe. i see ourselve in a contraction stage but in the long run -- or even to say short
run, depending our your age, you, myself, and others can make more money than where we
were at and are currently. isn't that why were in the game? too make more money $$

then they wont loan to Warren Buffet himself. There is never a "happy medium" so to say.
Sorry for rambling on..LOL

I don't think the Fed has too much more room to move believe it or not. They don't want
to get back to a 1% rate...especially seeing how the dollar is languishing right now.
MAYBE another 25 basis points..but I don't see them going any lower than 2%. That's why,
with their last cut, they only went 75...they left themselves a little more "wiggle room"
if need be. The Fed isn't the Holy Grail here. I believe the market, for the most part
has priced in bad news, and has hit it's lows. More dips? Possibly. Today will be the
show and tell so to speak. IF we come out today, and either gaining on this past tuesday,
staying even, or giving back a tad..I think the market has self corrected. Now it's just
time for the banks to get their rear-ends in line, and start loaning money again. Having
worked at banks before, I can tell you (i'm no pro though), they go from one side of the
spectrum to the next..never any middle ground. They'll loan to anybody with a pulse, they
get burned,

I don't think we'll hit the "textbook" definition of a recession. If we do, it will be
extremely mild. Nothing like 90-91 and certainly nothing like the late 70's to early
80's. Unbelievably, 5% unemployment has pretty much always been the "Benchmark" zero
unemployment number. We're at 5.1% and I hear people calling doom & gloom. We have to
keep in perspective that "dips" like this are perfectly normal in a business
cycle...especially in seeing how the housing bubble burst. When we don't follow
fundamentals, we get burned. We're in, what I would call a "Market Correction", and
that's for the economy as a whole. A return to fundamentals. Keep your chin up...we'll
make more money here in no time. I call the first signs of a small recovery here towards
this second quarter into mid-third quarter

HazyDavy,

how do you think the Fed is going to react with that supported opinion then? more rate
cuts? another stimulant package?

I'm just curious and new to the market

Here's my opinion and I'm far from an economist. I think we're in a mild recession that
will last another couple of quarters. The economy will start to pick back up either late
this year or early next year. The stock market may tread water for a few months, then will
go higher.

Has our economy hit it's year low, or will it go lower?

Is our economy ready to pick back up? And if so, what's everyone expectatoin on when and
where it's going?