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Re: [Pen-l] Fed to start buying commercial paper



On Tue, Oct 7, 2008 at 1:55 PM, Doug Henwood <dhenwood@xxxxxxxxx> wrote:
>
> On Oct 7, 2008, at 4:46 PM, Jayson Funke wrote:
>
>> Anyone know what will the Fed do with the paper it purchases?
>
> Collect the interest, probably. It's not likely to go bad.
>
> Doug

And in terms of short term unfreezing of credit, this is an immediate
short term effort.  Will the Fed need to become the main short term
credit lender, or will cascades from this cause other short term
lenders to start lending?  Talking of short term lenders, has loan
sharks incorporated , er the payday loan business frozen? Or are they
still happily collecting their  300% interest?
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