“at what point will people no longer be able to spend money they don’t have?”

They’ll continue to spend as long as they have a job. If unemployment starts to move up, watch out below but until then consumer spending will be just fine.

“If the credit market has settled, there’s no need for further rate cuts, regardless of the opinion of the stock analysts.”

The Fed is also cutting rates to halt the so-called slow down in the economy, which the data to date is having a difficult time supporting.