Yes it is. They should have let the market sort itself out.
OMG...I've warned anyone looking for insight on mortgages or real estate to not seek it on a thread started by HS, or follow his advice. This is why.
The Fed, for those who don't know, use interest rates as one lever to control economic activity. The thinking behind this is that if interest rates go up, fewer people and businesses will want to borrow, commerce and therefore the economy will slow down. It works.
There are other levers they can use, but this one is the best known. They set this rate...the Fed Funds rate...which becomes a target. When you hear on TV that the Fed is raising or lowering rates, this is the rate the Fed actually moves. It's the rate that banks charge when they lend each other money, for periods as short as overnight. A bank will lend because they have excess cash, and they want to earn interest on it. A bank will borrow from another bank, for example, to meet regulatory requirements for what's called "liquidity."
The Fed wants the rate banks are charging each other to equal that target. They do so by increasing or decreasing the amount (or supply) of those funds available. This is called a market operation, and is typically done every business day.
I can explain more if anyone wants to know, but what Hydroshock is describing as a bailout is just what happens in the normal course of the business day. Frankly, it would be news if the Fed had interfered with what is a normal part of their daily operation.
Anyone who does not understand this is not a source for financial, mortgage or real estate advice or perspective that you should follow. I'm sure he's undoubtedly a very nice guy and a good judge of wines; he is not a good source of perspective or advice.
That's my $.02; my background is that I'm a real estate investor, I spent 6.5 years as a mortgage broker/banker, and I'm a licensed Series 7 and Series 66 investment advisor.