Has the US Fed done enough to push down interest rates and save the system

Ok you save some money , save some institution but the problem is very deep rooted , which cant be solved by rate cut alone today it was mortgage backed sub prime , tom it would be credit card subprime . Various credit card company issued subprime card and card to already defaulting mortgage holders . Now these loans are also converted in to CDOS ,Here is how easy it is to build a scam credit card CDO as explained with a great couple of paragraphs from the Mortgage Blues site. “Bubba applies for a credit card and gets one with a $300 credit limit at 10% interest. They charge Bubba $99 for issuing the card, $99 as an annual fee, and Bubba can actually buy one tank of gasoline without going over the limit. Bubba gets a bill, pays it immediately, and the payment gets processed one day after the due date. Bubba’s rate goes to 29.99%, he gets a $39 late fee, a $39 overlimit fee, and a bad attitude. The bank, however, has a false $350 credit card asset, rolls it into an asset-backed security along with 100,000 other cards like Bubba’s, and sells $35 million as asset-backed securities. The problem is there are no assets to back the security. There is no collateral. Recognizing that they have been scammed, twenty percent of the Bubba account holders don’t even send a second payment. After six months, 40% of the Bubba accounts quit paying. The rest pay off the account immediately and talk bad about the bank for the rest of their lives . So what will happen to this CDOs and their investor a major default waiting to happen , this could be in the range of 300 to 400 billion usd . Don’t become complacent that the subprime meltdown is over, my friends, we have not yet begun to melt. Rather than exercise good and prudent common sense to limit borrowers from economic downturn, the banks did nothing more than lend themselves into a corner by competing with riskier and riskier products. It was all creation of financial engineers and now the whole world is going to see a slow down becuase simple basic prudent norm of lending were not followed in world biggest Financial HUB and in most advanced country.”