Fed Rates Redux

Fearing recession, the Federal Reserve Board has dramatically lowered interest rates in order to make it easier to borrow (and spend) money.

One of the causes of the feared recession is the bursting of the housing bubble, which was caused by low interest rates leading to excessive borrowing (and spending) on housing.

So the current problem is caused by too much borrowing, and the "solution" offered by the Fed is to encourage more borrowing?

Does anyone else see a possible problem here?