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Credit Crisis Update: An Inside Look at the Commercial Paper Debacle
By Shah Gilani
Money Morning
The commercial paper market is the thoroughfare where Wall Street merges into Main Street. Corporations, finance companies and banks rely on Main Street investors for the cash they deposit into money-market funds and other short-term investment vehicles. Ultimately, that cash buys the commercial paper that’s issued to help fund everything from corporate payrolls to a manufacturing company’s production inventory.
The deepening credit crisis – with its inevitable contagion spreading like a nuclear winter across the globe – is forcing the U.S. Federal Reserve and central banks worldwide to go to extraordinary measures in their attempts to thaw out…
9Oct2008 | Money Morning | Comments Off | Continued
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