Given the scale of losses tied to the collapse of the housing bubble - the decline in real estate prices in coming years could cut household wealth by $4 trillion to $6 trillion, according to some estimates - economists say it's understandable that the Fed is doing what it can to support growth.
Too many people were treating their homes like ATMs during the bubble -- a significant percentage of that $4t in wealth was cashed out in home equity loans that are now defaulting at record rates. That $150b is nothing compared to $4t.
The coming recession is going to be long, and it's going to be ugly. I don't think that you need an econ degree to see that.