SOMEthing is just around the corner, but maybe it isn’t prosperity.

WASHINGTON – Confronting new fears of recession, the Federal Reserve is refining an emergency economic rescue plan that includes further interest rate cuts and billions of dollars in extra cash for the banking system.

The Fed’s effort would be aimed at pulling the country out of a nosedive that has seen 465,000 jobs evaporate in just the past two months, raising fears among economists that the weak recovery from the 2001 recession is in danger of stalling out altogether.


Because of this, some economists believe the Fed will not wait until its May 6 meeting to put its plan into effect, opting to cut the federal funds rate through an emergency conference call, possibly as soon as this week.

However, other analysts argue that the Fed will likely wait, hoping that the favorable tide of the war will bolster markets in coming weeks and restore confidence.

“I think they will hold off cutting rates again to see if an early, successful conclusion to the war has the desired effect everybody is hoping it will have,” said Zandi.

Right, the war will end “early” and everything will be roses. Never mind record levels of public, corporate and private debt. Never mind record low saving rates. Never mind record concentration of wealth. Never mind that all the new jobs are exported to other countries.

Tax cuts for the rich, program cuts for the rest of us, and wars — all laying on a bed of propaganda to keep the sheep in the corral so they can be sheared. Yep, that’s a real prescription for prosperity, all right.