They've already done everything that could be done. They done so many bailouts, stimulus bills, fed market manipulation, etc. Meaning ironically the more they do the less of an impact it has. The market also realizes the many possible unintended consequences of this money printing and bailouts. If they keep doing more of the same for much longer I bet the market breaks to new lows.
There is a window of oportunity here. Everyone I talked to in 2008 were postponing purchase or selling of their home until 2009. By the time the winter is over we need a domino effect to help start develeraging the realestate market. Fed has perfect oportunity to be the catalyst. Available credit ->oportunity to sell (at small loss) ->oportnity to buy (at smal loss). Rinse and repeat until realestate hits the bottom.
It wouldn't work if Obama cuts executives compensations. On the other note: competing with China, there are no easy way out, unless American want to do dirty and labour intensive back breaking works(no porno jokes), instead doing government/financial paper-pushing jobs. Better learning the theory of division labour before bashing China/India for stealing American job, you just make a fool out of yourself. LOL
I see no other way. Obama cant push this down the road. Plus if you listen to his address on whitehouse site, he is adding transparency to this. Well if we are done with fantasy land now.....