I mused to a colleague a while back that since fiscal stimulus is hard to do well and relatively slow, perhaps we would be better off if the feds just pumped massive amounts of liquidity into credit markets. Well the Fed appears to have decided that it needed to be more aggressive on quantitative easing. Will it work? There needs to be borrowers for this capital that have productive uses for it and with recession in other parts of the world this demand will probably be muted. But I think it is well worth the risk. The rate at which we are shedding jobs is phenomenal and bold action is what is called for.
For Oregon this strategy may have a side benefit. The value of the dollar is declining and this will make Oregon exports more competitive. Since Oregon is particularly dependent on exports, this decline may be some help.
As seen on this nice NY Times graph the effects are immediate: long term debt just got cheaper. This should also help Oregonians buy homes and stay in their homes as mortgage rates come down.