Your paycheck is in the mail, thanks to Monday's roll-out by the Federal Reserve Bank of short-term financing to some of the nation's biggest businesses. The Fed's intervention is illustrated by the spike in the chart above. The issuance of 90-day commercial paper surged ten-fold, with the Fed committing over $60 billion in a single day. The money will help companies meet payrolls and replenish inventories.
"Of all the things the Fed has tried this year," writes Minyanville's Charles Payne, "I believe this is the smartest. Payrolls have to be met, and cash has to flow into coffers if businesses are to forge ahead in a tight credit environment."
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