ok we are at 0, so what do we expect now, minus interest rates? seriously there isnt much you can do. Well you can print, but that would have disasterous implications.
Bridge Loans, voluntary repos, equity stakes, no-recourse loans, bond purchases, underwrite M&A's etc etc. They will find other ways to juice capital besides rates.
it does seem like we are in some sort of japanese situation right. Like how the japenese forced their banks to merge with good and bad, supposivly to form strong banks. Or when companies bought assets at inflated prices, instead of accounting for them, they were allowed to let them rot in the books, till it got out of hand. But remember all of the anticipation of lowering rates, I just dont see them having many bullets. We are now talking about increaseing supply of money. if thats the case, wouldnt that scare off debt investors. If you were an investor, and you heard a country like britain was printing money, wouldnt you flee. I think the best thing bernake could do is say this, this it we have some extraordinary thing we could do but we are saving them, only allowing time to heal the wounds would do it. Yes the markets in the short term will go down, but we arent short term oriented anyways., are we lol.