Why not raise the Federal Funds Rate by even 25 basis points? Imagine that they can not even do that! How much leverage do they have on the short-end? This could be beyond the 10% margin situation of 1929.
I compared it to the Nikkei in 1989 last night. That was a result of excessively loose monetary policy that lasted for YEARS. Has it worked out 25 years later? NOPE. The 1920s are a decent comparison too. Who knows when the train stops though.
Well one thing is certain, if you can't even raise the Federal Funds Rate by 25 basis points and it remains nearly 100 bps below the lowest levels reached from 2001 to 2003 at 1%, then you have a serious problem on your hands.