Is there really a recession possible in the near-term? I just saw this on Yahoo:

Feldstein, who warned of a “multiplier effect” from declining home prices and lower consumer spending, said a cut of as much as 100 basis points might be warranted.

Wow – 100 basis points. I had been hoping for a 50 basis point drop in September, but a 100 basis point cut? That would send the markets into a tail spin. Not to mention the fact that the Fed can cut the rates anytime they wish – they don’t have to wait for the meeting in Sept. If things were dire enough, a 25 basis point cut last week would have been the most logical thing for the Fed to do – an out of cycle change.