In your mind, a 0.5% cut in the Fed Funds rate would cause "easy credit"? How does that work?
Let me rephrase "easy" to "more attractive".
There is no such thing as easy credit in this market - with a TED Spread hovering around 360 bp.
Good catch...I shouldn't have used the term.
Bernanke only knows to keep lowering rates to encourage more people to make efforts to get a loan. Whether those efforts succeed depends on the underlying economy.
If Bernanke lowers the rate to 0 and loans still aren't being given then we have a little bit of a problem...