Fed To The Rescue!

The Fed has de facto cut interest rates. Bernanke is in his heliocopter dropping cash!

Today they formally cut the "discount rate", the rate at which they charge banks (not the headline Fed Funds Rate). In their statement, they made it clear that they would do more if necessary. Behind the scenes, they've informally cut the Fed Funds Rate already. They just haven't announced it. Meanwhile, the nation's largest mortgage bank is having a run.

Let's see if that stems the bleeding or if more is needed.