Fed in "Panic Prevention" Mode

From Merrill Lynch:

3/12/08 - "The Fed continues to react to events as they unfold, moving incrementally and targeting its actions towards bolstering liquidity in the financial system. This latest experiment, as with the others undertaken thus far, does not address underlying credit problems, does not materially improve the solvency of the institutions exposed to assets under stress, does nothing to put a floor under home prices, and we see no reason based on this for anyone to change their economic or earnings outlook despite the stock market’s initial reaction to this latest initiative."

"The Fed’s move will, at the margin, bolster liquidity in the financial system. In various forms, this is what the Fed has been trying to do since last summer...However, with each passing liquidity “cushion” the Fed provides, it is becoming increasingly evident that there is no...