The decision last week by the Federal Reserve to flow up to $200 billion into the credit market has done little to embolden market participants, many of whom believe the Fed's action did not go far enough to help the credit crunch.

"From one standpoint I think [Fed Chairman Ben Bernanke's] targeted response is certainly interesting from a wonky textbook point of view, but to a certain degree this is a lot bigger than certainly yesterday's action acknowledged," said Max Bublitz, chief strategist of SCM Advisors. "It's a little bit akin to coming to a knife fight with a cap gun. I think that's in essence what everyone's saying."

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