Central banks around the world yesterday (Wednesday) announced a coordinated reduction of their respective interest rates in a bid to restore investor confidence and put an end to the worst market rout since the Depression era. However, analysts and investors alike are skeptical that even the largest coordinated effort by central banks since Sept. 11 will be enough to save the economy from a severe recession.

Although consumers and businesses have gotten a bit of a reprieve at the gas pump as of late, says William Patalon in Money Morning, the escalation in oil prices we’ve seen over the past year has led to some major changes in overall consumer behavior. Many car-owners have dumped their gas-guzzling pickup trucks and SUVs at the nearest used-car lot and used the proceeds to buy some gas-sipping rides.

The U.S. economy is certifiably lousy, says Lynn Carpenter in Investor’s Daily Edge. Many businesses are looking for a turnaround. There are many factors affecting the success of a turnaround. A company needs to have a clear direction of what it is and where it is going. And it needs a brand name that has not been dragged through the mud. More from Lynn…

New Home Sales Plummet; Mexico Staves off U.S. Slowdown; Monsanto Reaps Big Rewards; MasterCard Pays AmEx $1.8 Billion; Buffett Concerned About Stagflation; Reduced Damages for Exxon; Nike Strong in Asia; More Cuts for Penney’s.

You can bet there will be a lot of discussion about interest rates this week, thanks to the release of the producer price index (PPI) report tomorrow (Tuesday) and the U.S. Federal Reserve meeting minutes on Wednesday.