Probably not. That is not to say that the Fed's actions will have no effect. We think they are--and will continue to be--very powerful. But we doubt that the Fed can single-handedly fix the credit crunch. (Click to watch our related video report on the Fed.)
The Root Problems
What is the Fed trying to fix? The biggest issue now is liquidity in the mortgage debt markets. Investors are shunning securities exposed to mortgages that could default. To fix that, investors need to be convinced that massive mortgage defaults will not happen, and those that do happen will be contained.