The move triggered a short rally, but it did not solvethefundamentalproblem: Credit Suisse last week said that bad debt could be as much as 60% of bank equity.
And so while the Fed can mitigate the downturn somewhat, either keeping us out of recession or more likely making the recession that's coming less deep, it can't solvethefundamentalproblem.
But if we want to build on this structure and solvethe free-rider problem, there are three fundamental flaws in the current system that need to be corrected.