re: How do you stem a recession?

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