What does commercial paper have to do with the current economic downturn?

I don't know much about this stuff but, I do know when you reduce the number of non-financial loans by a really large amount in 2000 - 2003 of almost $400 billion or so,  and then again on 2007 by another $300 Billion in 3 months, that those huge amounts hurt!

I wonder if the companies who use this type of funding, use it for their payroll costs? You know, short-term non-financial financing is cheap and does not tie down the company's ability to get long term loans because of collateralized loans.

I like to believe there is a burning bush somewhere in the Federal Reserve Administration that is all knowing, not just fire sales and shadow banking systems set up by Citigroup. The welfare of the Country is much more important than people thinking Bernanke is really talking to himself!

No matter what, those stone tablets are undeniable! I am sure the recording of important financial laws and regulations will have little affect on what the ALMIGHTY has in store for us. Hey Bernanke, Ask the burning bush!

http://www.federalreserve.gov/releases/cp/outstanding.gif

Tags: Commercial Paper Unemployment Economy Recession Depression