On Jan 19, 2009, at 3:06 PM, SA wrote:
> In your chart, the 2008 drop in CP volume growth looks no steeper
> than the drop in 2001, which was not a very serious recession. And
> C&I loans grew faster in 2008 than they were growing in the late
> 90's (?!)
The Fed saved the CP market with its intervention - it's now buying something like a third of the issue. C&I loans were being held up by firms drawing down existing lines of credit that won't be renewed - the Fed's survey of loan officers shows massive tightening ahead.
Doug