Feds cut discount rate

So the Federal Reserve cut the discount rate yesterday. That's the amount of interest banks have to pay eachother in order to borrow money across the board of international finance. Alan Blinder is quoted in the New York Times (Princeton economist) this morning saying that while the move may be seen as providing a bail out for hedge funds and the big players in the market, it is a necessary move to save the economy from sinking into recession. My take is that such a move, if it indeed quiets things in the higher reaches of market activity, is only to 'push the credit bubble further along' and not really solve anything in the long term.