How do you stem a recession?

It all really depends on what the causes of the recession are.

Our current recession is more the result of previous excess... it is more of a return to a managable consumption level at both the consumer, business and eventually (ha!) government level. We have spent, at all levels what we dont have, and the issue will not be resolved until spending and heaven forbid savings can be supported by income.

To inject further additional borrowing and spending into this cycle simply will drag out the inevitable deflating and deleveraging of the economy. The only cure is for the inevitable contraction to take place and in my opinion, the sooner we let that happen the better.

the only way to not have recessions is to prevent them, and the only way to do that is to have anemic growth all the time.

Just seems like bad news begets bad news which starts the cycle again.

Ticket prices of big 10 and pac 10 games should be quardrupled. That would stop this recession. Oh wait...they have already done that. Well...they'll just have to jack up the big 12 tickets too. Take one for the country, big 12. Spend some of that oil and ethanol money so I can afford granite counter tops. :)

Apparently the Fed doesen't know the answer to your question.

'A cat fight at the Fed'
Wednesday, January 14, 2009
'Apparently they're not all singing from the same hymn book these days over at the Federal Reserve as Philly Fed President Charles Plosser has broken ranks with Fed Chief Ben Bernanke on how the central bank is using its massive balance sheet in what appears to be a never-ending attempt to save the world.

At this point, with things as bad as they've gotten, you have to stop and wonder, "Would it really be any worse if, from August of 2007 on, the Fed and the Treasury Department had done nothing?"'

Plosser, in a speach Tuesday, was very critical of current Fed actions...The plot thickens...

LINK

That used to be the answer before lots of countries built nuclear weapons and delivery systems.

The economy is bad now, what do you think it would be like after a nuclear war?

'most people always find a way when they want something on how they are gonna get it paid for in order to aquire it. the ice will begin to break up in the next few months......'

Most people will find a way if their bank, credit card company, mortgage company, etc agree to lend them some money...Or, they hit the lotto, rob a bank, inherit some money, move in with mom and dad, etc.

Easing of credit and willingness to borrow are the keys and some banks have recently demonstrated that they are willing to lend...to those that are good credit risks.