The Fed attempts to fix what it had previously crashed, lowering rates to 0.75.

Many causes have been sought to the turbulence that is currently suffering from the global financial system. I do not think a single fault, each should be responsible for their actions. It is clear that those who made their decisions years ago whereas borrowing rates would remain permanently at 1% acted recklessly. It was very difficult for these low levels are sustainable.

But between June 2004 and June 2006, the FED increased its 5 type of from 1% to 5%. This was probably the most irresponsible of all. You can not increase rates by 5 to 2 years and hope that everyone will be able to adapt to that quickly. The 5% is not high, but rates increased by 5 is an irresponsibility that has brought many problems which currently has the financial system.

The management of interest rates cause the economy to stability. These changes have caused such sudden effect, generating a great deal of instability. Hopefully from now the new managers to rectify the FED and bring stability to the economy, which is the mission that they are responsible.