Should the Fed 'Rescue' the Financial Markets?

"The rates should float. Market conditions would dictate almost immediately what rates should be. Mr. Forbes and Mr. Trump stated rates should float and they are right. Rates are 100 basis points too high right now."  - Danbe, California

"There is a downside to the bailout. There are people who have been priced out of the market because of easy money pushing prices out of reach. There are a lot of families who would love to see a correction in home prices so they could buy. A bailout would prolong this price correction and harm first time buyers."  - Glen, New Jersey

"I don't care how well telegraphed the rate hikes were from 1% to the current 5.25%. Raising them 13 times, one right after another was reckless. They need to be done slowly, over time, to let lenders, borrowers, banks, housing industry, adjust to the new paradigm." - Steven L.

"There is no way that the Fed should come to the rescue of subprime borrowers. If an idiot is willing to pay $500K for a house that sold for $100K four years ago, and take on debt to do it, then he will have to pay the price when rates rise. This country has been rewarding debtors and penalizing savers for way to long!" - Gary,  Florida

"Despite our beloved Cramer's 'sober analysis and discussion,' which I delightedly caught live, I do not feel a Fed rescue is needed at this point. As YET, there have not been any significant constraints on NEEDED liquidity, and the current volatility and losses are a needed resultant of extreme, if not reckless, narrowing of risk premiums by too many heretofore smart people." - Ed R.

"Should we give another tax cut to the rich? Should we allow no transparency? Should we bail out the NY brokers and hedge fund guys?  No, of course not.  DUH." - J.K.

"Jim Cramer is right, and I think the Fed will cut rates to 4-3/4% in September." - Al

"Rescue the markets? Absolutely not. This is like refereeing a boxing match and the best referees are the ones you never see, there in the corner observing, insuring a fair fight but otherwise letting the combatants go at it. For the Fed to jump in is the equivalent of the referee picking a fighter off the mat and helping him fight his match. If the markets lose (and the mounting evidence suggests they will) hopefully it would mean the markets will come back next time leaner, wiser and in much better shape for the rematch." -  Casey S.

"Definitely not. And if in some delusional moment the Fed decides to help out, it should only be with an accompanying tax on those who made the money creating the mess. It could be a one time penalty tax or a permanent tax increase for those involved. Four Bear Stearns partners just cashed in for $57 million dollars on insider trading (selling before they knew the bad news would hit). SOMEONE has been making money creating the mess and they should pay (i.e. be penalized) to fix it.  No one complains when Wall Street is ripping people off left and right making money, but when they start losing money they become a bunch of cry-babies (led by Cramer, the biggest cry-baby of all)."  - Paul, New York

"No way! Hasn't the Fed done enough damage already? The Fed's policy of keeping interest rates at artificially low levels for years has been a major contributor to the current problem. Low rates fueled skyrocketing housing prices, and encouraged people to take on more debt. The Fed created this mess. It's time they back off. Lowering rates will just draw out the pain, and boost inflation. This correction is going to be painful, but we need it." - Janet K.

"Suck it up. We (our family) has worked our tails off the past decade in order to gather cash to avoid a large (loan.)  You should have bought a fixed rate when you had the chance! Sorry."  - Patrick, NJ

"Here we are, the greatest financial nation on this planet, and we are running our economy: 'Praying, hoping' for a 'Soft Landing,' wishing for a 'Goldilock economy' on a 'Hunch.' We are trying to tell the Chinese how to handle their Yuan. They must be laughing at us head over heels. Our rates are at least 100 basis points too high now. Will Bernacke wait, like Greenspan, until we start faulting past the point of no return?" - Dan, California

"The ultimate greed factor has set in at Wall Street and around the world. It started in 2003 when home buyers bought way too much home, not to live in, but to benefit from appreciation that was like a California wildfire. It was like "DAMN THE TORPEDOES FULL STEAM AHEAD."  Financial institutes pushed people to go into extreme debt, knowing that they would never be able to pay back the loan. Everyone wanted to become millionaires overnight by getting into hedge funds, mutual funds, investing in China, Japan, Korea, India and Malaysia... People fell for the zero down with $2,500 cash back for a new car, truck, SUV, Boat, ATV, snowmobiles, hang gliders, aircraft, etc...  Drug companies pushed people to the brink via Rx.  So, to sum up this fiasco, it all adds up to biting off more than you can chew.  Too much DEBT, can't make mortgage payments, unable to make car payments, filing for bankruptcy, repo way up and spending way too damn much on their kids...  A major recession and pull back is on the way." - Sam H.