Confidence, or the lack of it is the what makes all things in this world function. The Fed was trying to ensure that confidence remained, while the investment bankers and real banks were begining to see that they were nearing a collapse in confidence within their own ranks .

Nothing happens if either party to any transaction begins to lose faith.

This is so fundamentally true that it applies at the level of deals within our homes, and deals between countries. All else is smoke and mirrors including the price of gold. IMHO.