Quantitative funds have been hardest hit, as investment models that had made money for ages briefly proved worse than useless.

ECONOMIST: The crisis of confidence

By re-purposing these funds, the Fed would not have to engage in further quantitative easing but may be able to further stimulate the real economy with funds already in existence and thus place no, or at least minimal, additional risk on the tax payer.

FORBES: Don't Get Hyped Up About Hyperinflation

ChartObject Federal Funds Target RateAccording to Investopedia, quantitative easing is a government monetary policy occasionally used to increase the money supply by buying securities, such as U.S. Treasury Bonds, in the open market.

FORBES: Hope That Gunslinger Bernanke's Trigger Finger Is Slow On The Draw

Quantitative easing is when the Fed buys up a specific dollar volume of Treasury securities, regardless of the Fed Funds rate.

FORBES: We Need QE3 Like We Need A (Jackson) Hole In The Head