It is the Fed's job to bail out financial markets when the need arises, assuming the need is unforeseen... However, it is difficult to justify that same action when it is the biggest players in the game that are responsible for the mess in the first place, and when any economist with half a brain could have foreseen the mess. This places the Fed in a very tough spot, because it is very much like these big players have taken the markets hostage and demand credit for their safe return. If the Fed does nothing, the hostage will die (i.e. market crash, financial doom). If they give in to the demands on the other hand, it's telling the hostage takers that they can carry on with their wicked ways with no consequences because they will jump to the rescue any time the markets are taken hostage.