The Fed is band-aiding it up because this is an election year. Most recessions start after the election year especially when there is a lame duck president.
Lawrence Summers, who served under President Clinton, fears could become the worst downturn since the steep 1981-82 recession. http://news.yahoo.com/s/ap/20071223/ap_on_an/mortgage_crisis
The more you postpone a recession, the harder it will hit when it is there. I won't be surprise if there is a nasty one after the elections. Whoever who took over Bush will definitely have a very hard time clearing the issues he left behind.
Tesla and I have been saying this forever! Even if nothing of what we say materializes, isn't being safer better than being sorry?
What you saying is correct except that we are presently in a recession. I believe the odds ar 50-50 that we will fo into one after the presidential elections.