Fed Chairman Greenspan confirmed today what we've been telling you for months -- the economy will not stage a recovery by year end, and interest rate cuts have done little to spur the economy thus far.
Though Chairman Greenspan is still holding out hope that a new round of interest rate cuts and upcoming tax rebates will coax the economy out of its slump, we have little faith that that will happen. After all, the Fed has already slashed interest rates six times this year, and the economy has responded by sinking further toward recession. And, the paltry $300 tax rebate that most Americans will get is a drop in the bucket compared to the $8,123 in credit card debt the average American owes.
The economy's recovery will be a long journey, and there undoubtedly will be many more pitfalls ahead. And right now, it still looks as if the economy will get worse even before it starts that journey.