Going a little to far? or not far enough?
Oct. 7 (Bloomberg) — The Federal Reserve will create a special fund to purchase U.S. commercial paper after the credit crunch threatened to cut off a key source of funding for corporations.
The Treasury will make a deposit with the Fed’s New York district bank to help set up the special purpose vehicle. The central bank will also lend to the program at policy makers’ target rate for overnight loans between banks. The Fed Board invoked emergency powers to set up the unit, the central bank said in a statement released in Washington.
October 7th, 2008 at 12:09 pm
It’s over. After reading this this morning, I thought this is the end. Time will tell, however the fed’s involvement is now over the top. Thanks for bringing this to our attention.