Kathianne
10-07-2008, 08:21 AM
It's no Hoover reaction:
http://news.yahoo.com/s/ap/20081007/ap_on_bi_ge/financial_meltdown
Fed to buy massive amounts of short-term debts
By JEANNINE AVERSA, AP Economics Writer 1 minute ago
The Federal Reserve announced Tuesday a radical plan to buy massive amounts of short-term debts in a dramatic effort to break through a credit clog that is imperiling the economy.
The Federal Reserve will buy "commercial paper," a short-term financing mechanism that many companies rely on to finance their day-to-day operations, such as purchasing supplies or making payrolls.
The $99.4 billion daily market for this crucial financing, which relies on investors rather than banks, has virtually dried up. That has made it increasingly difficult and expensive for companies to raise money to fund their operations. Commercial paper is a way of borrowing money for short periods, typically ranging from overnight to less than a week.
...
http://news.yahoo.com/s/ap/20081007/ap_on_bi_ge/financial_meltdown
Fed to buy massive amounts of short-term debts
By JEANNINE AVERSA, AP Economics Writer 1 minute ago
The Federal Reserve announced Tuesday a radical plan to buy massive amounts of short-term debts in a dramatic effort to break through a credit clog that is imperiling the economy.
The Federal Reserve will buy "commercial paper," a short-term financing mechanism that many companies rely on to finance their day-to-day operations, such as purchasing supplies or making payrolls.
The $99.4 billion daily market for this crucial financing, which relies on investors rather than banks, has virtually dried up. That has made it increasingly difficult and expensive for companies to raise money to fund their operations. Commercial paper is a way of borrowing money for short periods, typically ranging from overnight to less than a week.
...