Tuesday, October 7, 2008

Fed Moves To Buy Commercial Paper

I discussed commercial paper here. The fact that the Fed feels it needs to step into this market is worrying. On the other hand, the fact that the Fed is doing something is good. So... well, I dunno what to think.

Calculated Risk notes the same issue here, but doesn't really offer an opinion.

Update: Dow down around 500 points today. Brad Delong thinks helping commercial paper is a good idea provided we really have the money to be able to do it right.

Update 2: I should mention that my friend in commercial insurance said the Dow would drop "a few thousand points" when the market was around 10.5K, so maybe more to come. Sadly he's been scary right so far.

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