I posted a few links up above for you to understand why what the Fed is doing is proving to be impotent. You could at least read them :) Here is another one for your perusal
"Please tell me when we last had a stock market crash while interest rates were being reduced?"
Easy :P
The last crash that happened where interest rates were being lowered to have no effect was the last one :) The Bank of Japan lowered interest rates zero to escape what is known as a "liquidity trap" in the 90's.
Very simply put the BoJ faced and extended period where they were impotent. Bernanke while at Princeton wrote a series of papers that hypothesized that a Japanese style deflation could be avoided . His measures were a)increase money supply b) cut taxes and make those tax cuts fiscally neutral by the us of (A), (C) transmit this printed money to consumers through the Real Estate asset channel .d)Lower Interest rate e)buy real economy assets and services (eg the plunge protection team)
Consumer through the wealth effect of rising RE prices would use their homes like ATM's, borrow money and consume.
Bernanke got to enact his ideas in 2002 after the the .com bubble burst and thats how we got our Real Estate boom and the sub prime outcome. Greenspan was the fed chairman but they were Bernanke's policies from the start.
Peoples houses were not going up in price its was the dollars in circulation that was expanding.
No they wont meltdown in a day (there are all kinds of exchange controls in place) but give them till September and they will significantly move lower with major corrections along the way.
Bernanke is an idiot he has no chance of controlling this anyone says that he can arent concentrating on whats really happening