Well, it looks like the fed is going to take more emergency action with a .75 to 1 percent cut in the federal funds rate. What does this mean? This drastic cut signals that the downturn is out of control, and they are trying desperately to rein it in. This also means that we can expect it to last longer than experts were previously predicting.

Events over the past week have cast doubt on one of Wall Street’s cherished hopes: that the economic downturn lasts only until the summer before rebounding. – marketwatch article

The current Credit crunch is effecting the entire market, and uncertainty is everywhere. The fed is trying to combat this, but it may be beyond their control because of the nature of the new instruments being traded.

Friday, the Fed said it “is monitoring market developments closely and will continue to provide liquidity as necessary to promote the orderly functioning of the financial system.

If the fed does get this under control, have they gone too far to fast? could there be a whiplash effect when the economy turns around, and further send us down deeper?
The fall dollar also has large consequences for the average person, their paycheck is getting smaller every day. Goods they are used to purchasing such as gas, heating oil, and wheat are skyrocketing. Scary times, for sure.