In yet another attempt to break the log-jam in the credit markets, the Fed will now buy the short-term debt essential to funding companies most pressing needs (like payroll).
It’s unclear (I haven’t read the reports thoroughly) if local and state governments, like California, can take advantage of the new program.
Some might argue that this should have been the thrust of the Treasury Department’s bailout bill, but that would have made too much sense. Just like recapitalizing through equity purchases. All the sensible ideas, in this case, lost out to the crap sandwich.
Any adult who has managed their affairs responsibly should be livid right now. Furious, steaming, incredibly pissed.
And just wait until next year’s housing relief bill comes. Every moron who took out a mortgage they couldn’t afford is going to get a low fixed rate mortgage for their efforts. Where will all the renters and sensible savers be?
Screwed. Unless you fight it.