OP,

The Fed failed to do what it was actually set up to do and that's provide liquidity and elasticity to the currency (pump more cheap dollars into the banking system)- it allowed a massive credit crunch to insue. Had JP Morgan still been in power, he would have dealt with it handily but the Fed was now in control as the country was using a single currency and they utterly failed in their responsibility.

That's not happening now. They are pumping away to the tune of tens of billions, hundreds of billions worldwide. Plus they cut 100 basis points off the prime rate. So this current "credit crunch" is totally bogus and so much news hype. The business news outlets are really pushing this "crisis" for an advertising windfall. Now everyone is buying into it like post 9/11 and blaming it for their crappy performance like Walmart- as if Walmart's customers were all paying with HELOC money. Get Real!!!