There has been a folklore among the investors which is going to prevent the understanding of what is going on. The fiction has been said to be that Fed is had killed the last few expansions by the pursuing of a monetary policy which is too tight. The last few downturns were in fact caused by the financial crises which had spilled over and then hit the economy for real. The policy as per experts had for too long been too accommodative and the authorities which regulate have been way too lax. In this time, this is a shock for the real economy which is threatening a financial crisis. Volatility had exploded and forced the margin calls, illiquid conditions and distressed the liquidations in the deepest and biggest market such as the United States treasuries. The corporations have been drawing down the credit lines which are impacting the liquidity of the banks. The Fed has taken a lot of steps already for helping in minimizing the financial risks systematically from the anticipated and real economic shock. They had also delivered an emergency cut in rates of 50 bp which had boosted the size of their repo operations and also introduced a new repo for one month. As the stocks had been cratering on the 12th of March, the Fed had announced an operation of $500 bn for three months. It has also signaled the resuming of the QE by the announcement about buying the government bonds all over the curve matching their maturity profile for the outstanding securities. Before the weekend, it had conducted another operation and similar operation had been planned few weeks ago too.