Paul Krugman:

And here's the thing: I don' think it's just me, the actions [the Fed is considering in reaction to the financial market meltdown] sound trivial compared with the problem. He more or less admits that credit markets are worsening faster than the Fed can cut rates, so that money is effectively getting more expensive, not cheaper; the other measures he describes sound minor. Rearranging deck chairs -- that may be too strong, but it's pretty unreassuring.

So what should be done? I'm not sure (and I'm thinking about it, hard.) For now, I'd just say that this is really, really scary.