Jeff Cane today cites with approval Edmund Andrews:

On Sunday, Fed officials raised the stakes by offering investment banks a new loan program without any explicit size limit.
These moves, along with a $30 billion credit line to help JPMorgan Chase take over the failing Bear Stearns, is fraught with more than financial risk.
The biggest danger is damage to the Federal Reserve's credibility if it is seen as unwilling to let financial institutions face the consequences of their decisions. Central banks have long been acutely sensitive to "moral hazard," the danger that rescuing investors from their mistakes will simply encourage others to be more reckless in the future.

Cane himself goes even further: