Comments on: Credit Crisis Update: An Inside Look at the Commercial Paper Debacle

By: Buy, Sell or Hold Insight: GM Remains a High Risk Profit Play – Even as it Files its Turnaround Plan Today

Tue, 02 Dec 2008 11:12:53 +0000

[...] carrying “A” ratings on their bonds, and “A1” to “P1” on their commercial paper – accounted for about one-third of all investment-grade paper outstanding, I analyzed them [...]

By: For the U.S. Economy in the New Year, the Pain Will Precede the Promise

For the U.S. Economy in the New Year, the Pain Will Precede the Promise — Mon, 10 Nov 2008 14:38:11 +0000

[...] Money Morning Special Investigation of the U.S. Credit Crisis (Part VI): Credit Crisis Update: An Inside Look at the Commercial Paper Debacle. [...]

By: Jutia Group - Market Jitters & Political Critters

Jutia Group - Market Jitters & Political Critters — Mon, 03 Nov 2008 15:48:50 +0000

[...] The credit markets have thawed as corporations took advantage of the Fed’s decision to buy short-term commercial paper, thus, providing them much needed liquidity. Major banks began receiving capital injections [...]

By: Uncertainty Escalates as Tomorrow’s Presidential Election Looms

Uncertainty Escalates as Tomorrow’s Presidential Election Looms — Mon, 03 Nov 2008 14:42:52 +0000

By: Although Bank-to-Bank Loan Rates Fall for the Sixth Straight Day, Only the Strong Will Survive

Tue, 21 Oct 2008 13:07:02 +0000

[...] from issuers that can’t find buyers in the market. [Check out Money Morning’s report on the near seizing of the all-important commercial paper market, part of an investigative series on the credit crisis published by this global investing news [...]

By: How LIBOR Threatened to Destroy the Global Banking System

How LIBOR Threatened to Destroy the Global Banking System — Tue, 21 Oct 2008 08:00:36 +0000

[...] That high leverage makes a bank more profitable in good times, but it increases a bank’s risk in a downturn, because each dollar of capital has to support the losses on $15, $20 or even $30 of assets. Since last fall, banks have suffered losses on holdings of low-quality debt, which has reduced their capital. At the same time, they have been forced to take back onto their balance sheets assets that they had thought were safely parked in “Structured Investment Vehicles,” or SIVs, that were funded with commercial paper – and now the asset-backed commercial paper market has cratered. [...]

By: How U.S. Missteps Triggered a Spiral of Worldwide Margin Calls and Deepened the Financial Crisis

Tue, 14 Oct 2008 10:51:34 +0000

[...] Money Morning Special Investigation of the U.S. Credit Crisis (Part VI): Credit Crisis Update: An Inside Look at the Commercial Paper Debacle. [...]

By: As the Credit Crisis Deepens, There Are Still Many More Questions Than Answers | Jutia Group

Mon, 13 Oct 2008 14:06:49 +0000

[...] with access to much-needed cash. The U.S. Federal Reserve also will purchase significant commercial paper to aid short-term corporate funding. [Check out Money Morning ’s special investigative report [...]

By: As the Credit Crisis Deepens, There Are Still Many More Questions Than Answers

As the Credit Crisis Deepens, There Are Still Many More Questions Than Answers — Mon, 13 Oct 2008 08:31:10 +0000

By: Bruce

Bruce — Mon, 13 Oct 2008 00:00:17 +0000

Banks neither receive money, nor lend it. What they receive is a promise to pay money and a security interest in collateral. It then lends a party his own credit in another form and charges interest on the transaction. Of course, nobody expects to ever pay any money. Money is specie coin.

In short, banking is a big confidence game designed to transfer the wealth of people who do things and make things to people who do nothing. It is a means of consolidating economic, and thus, political power.

The fact that you present yourself as someone who understands money, but you so erroneously portray what money is and how it works suggests that you have a relationship with the bankers. That is important information to me, and why I still receive your news letters.