We've reached a juncture in the credit markets where it really doesn't matter how low interest rates go -- banks are refusing to lend and consumers either have no desire to borrow - or they are in such troubled financial straits they can't meet the qualification criteria for a loan.
So what's the Fed to do? Many believe the Fed will announce in their post-meeting statement tomorrow afternoon (2:15 p.m. ET) that the answer to rekindling economy growth is actually quite simple - print money like crazy.
In a nutshell the idea here is that by flooding the economy with money - banks will ultimately find themselves bursting at the seams with capital - and they will essentially have no other option than to start lending. As the short-term credit market swings back into action, business confidence will rise, employment will improve and the engines of commerce will roar back to life.