David Roche wrote an exceptional OPED called "Recession Is Inevitable" which articulates the response of the FED to problems in the system. Though doing all they can do, they cannot stop what is happening now that we are in "the contractionary (bear) phase of the cycle." His outlook is quite negative as a result. "Globally, total credit losses of $1.4 trillion will cause a contraction of world GDP of 2.5 percentage points, or half the current rate of global growth. So the global economy will become a gray, dull world of semi-recession and sticky inflation that will last a long time. Without major policy blunders, however, it won't be a 1903s-style depression."
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