Consumer Pulse

Bush, Bernanke open to more stimulus;
Bernanke hints at further rate cut
and stocks rise

So far, though, a string of drastic actions by the Fed and the Bush administration has yet to turn around a bunker mentality.
- Banks fear lending money to each other and to their customers.
- Businesses are reluctant to hire and boost capital investments.
- Consumers have hunkered down.
All the economy's problems are feeding off each other, creating a vicious cycle that Washington policymakers are finding difficult to break.

according to an Associated Press-Yahoo News poll of likely voters released Monday.
- One-third of Americans are worried about losing their jobs,
- half fret they will be unable to keep up with mortgage and credit card payments, and
- seven in 10 are anxious that their stocks and retirement investments are losing value

Unemployment could hit 7.5 percent or higher by next year. Many analysts predict the economy will shrink later this year and early next year, meeting the classic definition of a recession. Some believe the economy already jolted into reverse during the July-to-September quarter.