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Fed Buys Commercial Paper, Complimenting its Suite of Imperiled Assets

Posted on October 07, 2008

During the World War II era, the United States got rid of the pesky Bretton-Woods system and started financing the nation by printing extra money. The Fed, by buying unsecured commercial paper, is bringing those days back. Commercial paper a type of unsecured, cheap, short-term debt that doesn t have to be registered with the SEC is indispensable for some businesses to finance their operations, including rent and payroll. The commercial paper market has, in recent weeks, run low, threatening to choke business operations. From the Wall Street Journal:The commercial paper market has been u...

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