[IWE] Federal Reserve tries to jump start short term markets
Jay Mehaffey
iwe@warhead.org.uk
Tue, 7 Oct 2008 06:55:20 -0700 (PDT)
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http://money.cnn.com/2008/10/07/news/economy/fed_commercial_paper/index.htm?cnn=yes
>The Federal Reserve announced a new program to help the
>battered
market for short-term business loans - taking its
>closest step yet to
lending directly to businesses.
>The program addresses commercial paper, a form of
>short-term funding that is crucial to many businesses operations. >Under the program announced Tuesday morning, the Fed will
>purchase
three-month unsecured and asset-backed commercial
>paper directly from
eligible issuers. The program is slated to
>expire in April 2009 and
will have financial support from taxpayers.
This is a big move for the Federal Reserve, it is one step short
of it acting as a commercial bank itself. But it may work to get
the short term market jump started by taking some of the fear
out of the market.
Jay
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<html><head><style type="text/css"><!-- DIV {margin:0px;} --></style></head><body><div style="font-family:times new roman,new york,times,serif;font-size:12pt"><div>http://money.cnn.com/2008/10/07/news/economy/fed_commercial_paper/index.htm?cnn=yes<br>>The Federal Reserve announced a new program to help the<br>>battered
market for short-term business loans - taking its<br>>closest step yet to
lending directly to businesses.<p>>The program addresses commercial paper, a form of</p><p>>short-term funding that is crucial to many businesses operations. </p>>Under the program announced Tuesday morning, the Fed will<br>>purchase
three-month unsecured and asset-backed commercial<br>>paper directly from
eligible issuers. The program is slated to<br>>expire in April 2009 and
will have financial support from taxpayers.<br>This is a big move for the Federal Reserve, it is one step short<br>of it acting as a commercial bank itself. But it may work to get<br>the short term market jump started by taking some of the fear<br>out of the market.<br><br>Jay<br><br></div></div><br>
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