The Fed

The Fed is in panic mode and has been for the past six months.

Oh no, liquidity is drying up! QUICK! THROW MORE MONEY AT IT!!!

Except lowering rates and passing out more money isn't going to fix anything. The loss of liquidity isn't the cause of all the pain we're feeling, it's a symptom. An estimated $200+ billion is going to be lost, not because of liquidity, but because that value was built on top of highly levered investments that turned out to be crap. Once you yank out that last bottom Jenga piece, everything's going to come crashing down, no matter how hard you blow on it.

A very harmful side effect of continuing to lower rates is inflation, which has noticeably creeped up in food and energy prices - two things consumers can't stop consuming.

The Fed needs to start acting like an adult and stop dealing more drugs to the financial community. They're junkies who need to kick the habit.