[NorCalRepub]

.you are right....it is a band aid....but more of a psychological one.....the fear and panic where so overblown and getting worse, the Fed stepped in mainly to say....yes, we get it.....the 90 day Treasury is like 3.5%.....very very low compared to Fed Funds....since the current credit debacle with it’s negative impact is Deflationary, I expect them to lower rates by 50 basis points....their neutral statement was correct....the current process was NOW much more deadly than any inflation....which is really curtailed except for energy and food.....this was a stabilizer.....

[Moonman62]

you are right....it is a band aid....but more of a psychological one.....the fear and panic where so overblown and getting worse, the Fed stepped in mainly to say....yes, we get it.....the 90 day Treasury is like 3.5%.....very very low compared to Fed Funds....

They let the funds rate get in the mid 4's the past week, but now it's creeping back toward 5.25. I've been saying for a long time that the market should set the funds rate, and Kudlow says it should float (same thing). If the 90 day is at 3.5 can you imagine where the overnight rate would be if it was determined by the market?