I think the Fed is part of the problem this time around, as is a certain former Fed chairman. They have overreached and panicked markets into a much worse situation than was coming if they had allowed the housing market to crash on its own stupidity. They’ve shot nearly every bolt they have. A 1% cut gives them, I believe, only 2.5% more to work with.
Odd statement, since it is the Fed that has been the problem for almost a century.
Hardly. Even with a 1% cut the Fed is still way behind. And Bernanke has already shown that there are other ways to improve liquidity without lowering interest rates.