The Monetary Base (currency plus bank reserves, both of which are under the direct control of the Fed) has now doubled in size since mid-September, thanks to the Fed's extraordinarily aggressive quantitative easing program. In the past four months, in other words, the Fed has created more money than it created in its entire history. Most of the growth in the base has been bank reserves, but no matter which measure of the money supply you look at, growth rates are up sharply and rising.
As I have been pointing out for many months, whatever is causing this crisis, it's most definitely not a shortage of money. There is more money out there than ever before. Some large banks have disappeared, but banks in aggregate are expanding their overall lending; total bank credit rose at a 12% pace in the fourth quarter.
This is a crisis of confidence, and there is a shortage of people willing to buy risky assets for fear of suffering losses. Once people recover their confidence and once all the subprime losses have been realized, this crisis could pass surprisingly fast.