Creative Financing, Anyone?

I'm confused. Can Ben Bernanke and the Fed forestall a recession by dropping interest rates another tick? And do we really want them to anyway?

I'm no economist, but this feels like a whole lot of "Let's do anything we can to delay the worst until 2009." The naysayer in me fears that, while cutting rates may be superficially good for business on a macro scale, it will only lead to deeper personal debt for many Americans. And isn't that how we got into this mess in the first place? Somewhere in the proposed solution I see a snake swallowing its tail.

Kevin Drum takes a look at the situation and says "The chickens are coming home to roost."