Foreclosures slow or even non-existent movement in the new home sales area along with more bad news that house permits are being issued at ever lower levels doesn’t paint a good picture. The ability of the Federal Reserve to provide assistance is there yet they couldn’t do it all the time without endangering further the economy of the already troubled US. Budgetary spending increases in defense (namely Homeland Security and the war’s the US is part of) and other arenas have already taken its toll on the Fed with a deficit that grows ever deeper. Recovery will happen when the liquidity of the Fed is again replaced by private liquidity and that would be the best case scenario for all of us.