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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: KyrosL who wrote (40822)	10/8/2008 12:45:12 AM
From: energyplay	Respond to of 219167

Buying Commercial paper will have a double effect. It will let companies with good credit sell commercial paper again. Many companies have had to use their back up lines of credit with banks. With the FED buying commercial paper again, those credit lines will be paid down or paid off. It will take 3 to 9 days for this to start to work, because banks now want to see funds settle Step 2, If I was the FED, would be to buy asset based loans, specifically auto loans. Right now, about 70-80% of the working population cannot get an auto - reports are you need a FICO score of 750 or more. If something is not done to help US auto sales in the next 3 weeks, we will see about half the US auto plants shutdown in November, and maybe 1/4 in the rest of the world. Those plant shutdowns will have a huge ripple effect on parts factories, metal makers, mines, shipping, etc. If the shutdown is allowed about 4 to 7 weeks to feed on itself, enough time for inventories to build up to where most parts of the supply chain will have to shut down, the crash will propagate... The psychological effect will be enormous, and we can expect a sharp drop in retail sales world wide.