Yesterday, the Federal Reserve unveiled a plan to inject more cash liquidity into the financial market. The move was expected to help end the credit crunch by alleviating the liquidity crunch. Initially, markets greeted the news with enthusiasm, stocks rising and other markets taking heart. This morning, however, the story has changed.

The Fed liquidity plan has failed to provide investor confidence; instead investors are realizing that more liquidity is not the solution to the credit crunch, and the stock market is falling fast.

This video explains the basics of the Fed liquidity plan.