If you want to know what all the rate reductions by the Fed are doing: The core thing they do is drive down the yield from bonds and savings (since there is now a flood of money, thus no need to pay for much money), while driving up the yields from stocks (since if you can't make money on bonds, might as well buy some stocks with it). In short, it's a give-away to the stockholding class. Or at least that's how it's supposed to work. The problem is that lenders aren't lending because everybody is tapped out to their credit limits and can't repay any more loans no matter how cheap the money, while people look at the stock market and see potential collapse and loss of principal... so they're keeping their money in very low-yield investments, while waiting to see what happens.
My personal investment advice: Shotgun shells and seeds.
-- Badtux the Economics Penguin