10/31/08

What a Dilemma

The Fed released the weekly balance sheet report. The Fed reported that the Commercial Paper Funding Facility LLC holds $145.7 billion in 16 to 90 day commercial paper.
The Federal Reserve bought commercial paper valued at $145.7 billion in the first days of the program aimed at backstopping the market, indicating the central bank is generating most of this week's record gains in short-term corporate borrowing.

The central bank extended $144.8 billion of loans as of yesterday to a unit that paid $143.9 billion for the debt, the Fed's weekly balance-sheet report said today.
The main question is ; How could Fed get all these funds ? ( All of bailout plan )
The answer is ; by citizens.

American economy grows with consumption expenditures. So can u see the dilemma ?

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