Fed's Efforts to Save....

...the U.S. Economy and Financial System Succeed ... Credit Crisis Eases.

Under this scenario, the Fed's recent actions of slashing interest rates and pumping money into the economy are successful - the U.S. economy recovers and global growth resumes.

As a result, the credit crunch eases, and money flows through the pipeline. The big commercial and investment banks finally stop taking massive write-downs on bad mortgage securities. Foreclosures shrink, home prices stop hemorrhaging, and home sales pick up. Businesses start hiring and consumers resume spending. Life is good again.