Posted on 12/01/2010 11:55:09 AM PST by Lorianne
WASHINGTON — The Federal Reserve released documents Wednesday showing that its efforts to help stabilize the markets at the height of the financial crisis reached far beyond Wall Street and deep into the economy.
The crisis in the market for commercial paper, for example, the lifeblood of daily business, was more extensive and lasted longer than was previously known.
Even bedrock corporations like Caterpillar, General Electric, Harley Davidson, McDonald’s, Verizon and Toyota relied on a Fed program that supported the market for commercial paper — the short-term i.o.u.’s that corporations rely upon to make payroll and pay their suppliers. During the worst moments of the crisis, in the fall of 2008, even creditworthy corporate borrowers found this source of financing had dried up, and had to turn to the Fed for help.
While most of the Fed’s commercial paper purchase were made in the first few weeks after the program opened on Oct. 27, 2008, the central bank had to buy nearly as much in January 2009 and only slightly less in March 2009. Indeed, the Fed was still supporting the market for commercial paper well into the summer of 2009 — even as the recession officially came to an end.
(Excerpt) Read more at nytimes.com ...
I wonder what secret steps are being taken NOW, that we will only find out much later, if at all . . .
wow... Citi borrowed $1.8 TRILLION???
Have they paid any of that back?
9 TRILLION total money loaned out?? And, we wonder why prices are creeping up?
No wonder savers, saving the scrimpings of a lifetime of work and sacrifice are getting zero, nil, butkis. Why reward the savers when you can drive them into the dirt.
Thanks Federal Reserve, LLC.
I still think the fed should have let it crash, If a company has to rely on loans to pay payroll then it seems we have a problem. I know I’m going to get crushed but it seems out of whack to me.
Ditto.
Rip the bandaid off fast is the better solution
Of course, silly
They all paid everything back with interest !!!
The bailouts were great for us !!!
Agree... if you can’t make payroll you should fail, kinda like going to title loan company to get you to your next paycheck.
All I’m saying is that it seems like these companys were living above their means. I use a credit for some purchases but I use it within my means. If I cant afford it then something has to change. If our entire business model is based on loans that are above the means of the company to deal with then this has to be fixed. If the feds would have let it crash their would have been pain for us all but it would have fixed itself, JMHO.
[the short-term i.o.u.’s that corporations rely upon to make payroll and pay their suppliers.]
Rely on? Instead of managing their cashflow appropriately. Uhuh.
The bailouts were great for us !!!
You forgot the "/sarc" tag.
Please don't do that.... I'm too slow to know the difference.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.