On a Sunday? Bernanke must be panicking at the thought of another bearish day in the stock market Monday. The ironic thing is that these rate cuts actually have the opposite effect of that of which they seek: more people who are on the border of not being able to afford loans are given loans and then if they default, the cycle starts all over again. Economist Dr. Ravi Batra has spoken against these Greenspan-esque attempt to correct the market.

Sean-Paul at The Agonist has more:

The Federal Reserve reduced the rate on direct loans to commercial banks by a quarter-point and said it will allow primary dealers to borrow at the rate in exchange for a ``broad range'' of investment-grade collateral. . . The central bank, in a statement today in Washington, also extended the maximum term of discount-window loans to 90 days from 30 days. The Fed approved the financing arrangement announced by JPMorgan Chase & Co. and Bear Stearns Cos. JPMorgan separately agreed to buy Bear Stearns for about $2 a share.

Pretty damn busy for a Sunday night. Man, they are running scared aren't they? I imagine the dollar is going to get clobbered today.

The BearStearns deal looks like quite the bargain for JPMorgan. A nice little bailout from the Fed, and still bargain basement pricing per share? Don't look now, but I think Bernanke got snookered.

So did Jim Cramer.