Believe it.
The problems are extremely severe at this juncture and the power-brokers are desperate (both in the financial community and in Washington - not that there's much difference between the two).
They have only a couple of options, in my view. The banks don't have the money on hand (or in reality available in any sense) to cover their obligations. The Fed either needs to start printing money and introducing it into the money supply at a ridiculous clip so that the banks can borrow more and more to cover their obligations, or it needs to let the pendulum begin swinging back to market force realities. It will likely do the former and cut interest rates again to infuse a huge amount of new capital to the banks, which need that capital to cover their obligations since many (most or all?) have blown incredible amounts of their capital on terrible investments (like bad loans, insane derivative vehicles, and other wildly complex financial instruments whose initial purpose was by definition to obscure the pyramid scheme of financial corruption taking place in the 'marketplace').
Every time more dollars are created and infused into the 'economy' (read: given to the banks as bailout funds) inflation is rising and average Americans are adversely effected. This is no abstraction any more. Inflation is surging at a healthy clip these days. Take a look at your grocery bill over the last 2 months or so for a good indication.
In essence the printing of dollars by the Fed in this manner (whether associated with interest rate cuts or not - though it likely will be) amounts to a taxpayer financed bailout. Why? Because every dollar they print dilutes the value of every dollar that taxpayers (and others) are holding. This point doesn't make reference, of course, to the even far more egregious corruption that goes on in the context of taxpayer funded profits for the private bankers the Fed and beyond on a daily basis since our masters in Washington have sold out the people's money supply to private profiteers in the first case...
Either way, the Fed can't print enough money to get the banks out of their present gigantic holes. Though, it can probably print enough to drive the cost of bread and milk in America through the roof in the desperation to hold off the impending collapse for a little bit longer.
I think banks are going to start failing any time now, and major banks at that. They are already scrambling behind the scenes to minimize the fallout that will invariably accompany the ensuing disaster. Much of this is being done under the auspices of 'consolidation'. In the current context this 'consolidation' means a tactical bailout to further obscure the actual nature of a given institution's insolvency by comingling the funds, policies, investments, etc. of the acquiring institution with the acquired (which alternatively would be about to crumble). Have a look at the Countrywide/BOA situation for a bird's eye view of a typical example...
I saw a very apropos article yesterday or the day before with an extremely succinct headline. It related to the financial/banking industry and read something to the effect of 'No other industry has done a better job of privatizing profits and socializing losses...'
Rest assured the losses are being eaten, and will continue to be eaten by the people. Taxpayers, dollar-holders, and soon enough depositers...
Couple this with the international game of chess (perhaps dodgeball is a better analogy) going on that the MSM is refusing to cover (I strongly guess in collusion with Washington) whereby the dollar's international backing (in oil) could well evaporate very shortly and we live in quite dangerous times indeed. The madmen in power should never be underestimated in their ability and willingness to use their power to embark on disasterous adventures using the people's blood, sweat, savings, and children if such adventures diminish the prospect of them having to personally face the responsibilities owed for previous abuses of power.
There is no doubt from where I sit. Our financial system in in crisis right now. It's just being hidden from sight, not dissimilarly to how Dr. Paul and his message have been hidden. It will come in a hurry when it arrives publicly...
