Behind the bailout, the economy lurks

WASHINGTON, Oct. 15 (UPI) -- The $700 billion U.S. bailout designed to put the financial market back on its feet isn't going to help the underlying economy, analysts said

As credit markets show signs of improvement, the economy remains on the brink of recession, The New York Times said Wednesday.

Recent monetary policy shifts "will stabilize the market, but the real economic issues remain," Ira Jersey of Credit Suisse told the Times.

"Everything the government has done is not going to prevent further deterioration in the economy," said Stuart Hoffman, chief economist at PNC Bank.

"At the end of all this, what matters is what the economy does," Hoffman said to the Times.

Experts predict the U.S. gross domestic product will show marginal growth in the third quarter, the Times reported. The next GDP figure is due for release Oct. 30.

Consumer spending, propped up by jobs and wages, accounts for two-thirds of the nation's economy.

Reflective of consumer spending Tuesday, investors were cheered by a strong earnings report released Tuesday by Intel Corp., but discouraged by news from PepsiCo. The soft drink giant said in a release that it would close six plants and dismiss 3,300 workers.