October 7, 2008 General 0

Fed eyes short-term loan plan – Stocks & economy- msnbc.com.

I quote the article:

The government is weighing a bold plan to buy massive amounts of unsecured short-term debts in a dramatic effort to break through a credit clog that is imperiling the economy. The Federal Reserve is working with the Treasury Department on the plan to buy “commercial paper,” a short-term financing mechanism that many companies rely on to finance their day-to-day operations, such as purchasing supplies or making payrolls, according to a person with knowledge of the plan.

This has been tried and failed..so the govt’s solution is to put more non-existent money out there.  What makes this worse is this is UNSECURED debt so when it goes poof so does our future earnings.  As the market ticker guy says..call your congresscritters and get them to stop this madness(gov’t intervention that is)

*UPDATE* CNBC has more details on this latest Hyrda head.  It appears some are aqsset backed..as they call it..does this mean the same thing as secured?