Forex News: Feds Kohn on wires

•  ECONOMY ENTERING PERIOD OF `SLOW GROWTH'
•  `NOT MUCH WE CAN DO ABOUT' NEAR-TERM SLOWDOWN
•  FED'S EFFORT TO PROVIDE `OFFSET' TO TIGHTER CREDIT
•  `THE ECONOMY HAS BEEN HURT'
•  `CORRECTION' IN MARKETS IS `NECESSARY,' `PAINFUL'
•  LENDERS, BORROWERS GOT `COMPLACENT' ABOUT RISKS
•  MARKET TURMOIL EXTENDED BEYOND MORTGAGES
•  BANKS ARE MORE `CAUTIOUS' ABOUT LENDING

ANALYSIS: Kohn is telling like it is about the past, and about the future.  There are no real answers to the problems nor quick fixes.  It will be painful. 

What analyst should stop doing is insist the US will revert a recession as the US has problems that are longer term - starting with the housing market which extends to the credit markets.  With 10+ months of supply (5-6 months is normal) and interest rates lower on the short (i.e. adjustable rate loans) end but not neccesarily on the long end, the housing situation will not get better overnight. 

On Friday we get a key employment report which will either push the US toward more problems or keep hope alive.  So far employment is still ok.  If it starts to deteriorate further, business sentiment will soar and the unemployment rate will start to trend for the worse.