Fed Cuts Rate 0.75 Percentage Point in Emergency Move
The Federal Reserve lowered its benchmark interest rate in an emergency move for the first time since 2001 after stock markets tumbled from Hong Kong to London and the U.S. economy showed increasing signs that it’s headed into a recession.

World markets still volatile
LONDON – Asian shares rose Wednesday while European stocks dropped in a volatile market mix as investors digested the U.S. Federal Reserve’s surprise interest rate cut aimed at shoring up the sagging American economy.

Futures extend losses on bank write-down fears
NEW YORK (Reuters) – Stock index futures fell further on Wednesday as fears of more write-downs at banks worsened a mood already soured by worries about a U.S. recession and a weak profit outlook from Apple Inc

US moves to avert economic meltdown
WASHINGTON – Jolted by global recession fears, the Federal Reserve slashed interest rates Tuesday, and President Bush and leaders of Congress joined in a rare show of cooperation in promising urgent action to pump up the economy with upwards of $150 billion in tax cuts and government spending.

How to Stop the Downturn (by Joseph Stiglitz, professor of economics and Nobel prize winner)
The country needs a stimulus… We should begin by strengthening the unemployment insurance system, because money received by the unemployed would be spent immediately. The federal government should also provide some assistance to states and localities, which are already beginning to feel the pinch, as property values have fallen. Typically, they respond by cutting spending, and this acts as an automatic destabilizer. Federal assistance should come in the form of support for rebuilding crucial infrastructure. More federal support for state education budgets would also strengthen the economy in the short run and promote growth in the long run, as would spending to promote energy conservation and lower emissions.

Home loan applications jump as rates fall
NEW YORK (Reuters) – Applications for home mortgages jumped for a third consecutive week as plunging interest rates encouraged more homeowners to seek refinancings, an industry group said on Wednesday.