It's too early to break out the party whistles, but it appears the bottom of the liquidity scare has passed. The September 18 reduction in interest rates from 5.25% to 4.75% is already filtering through the economy. The cost of everything from mortgages to credit cards is starting to come down.

Of course, there was never really a shortage of money. What went missing for awhile was the confidence to loan it out. The Fed's rate cut helped as much on that score as it did financially. That's particularly true since Mr. Bernanke let it be known that further cuts will be forthcoming if they are needed.

There is still going to be clean up from the credit crunch but the idea that the Fed is willing to take care of the problem builds confidence in the business leaders.

This will allow them to go forward with plans and spend capital budgets. This will continue to feed the inflation fires.