How scared is the Fed that the economy has fallen off a cliff? It seems very, very scared by lowering its benchmark interest rate to between 0% and 0.25%.

It’s a good move, especially in light of the steep drop in employment, another plunge in housing, and the sharp declines in the CPI and PPI.

I know that Ben Bernanke is getting a bad rap for trying lots of stuff, but its the right approach.