As promised the Federal Reserve lashed out at the economy doing another bold move today proving that they are not going to sit back and wait for the economy to fix itself.
Today, the NY Times reported:
WASHINGTON " Saying that the recession continues to deepen, the Federal Reserve announced Wednesday that it would pump an extra $1 trillion into the mortgage market and longer-term Treasury securities in order to revive the economy.
If the Federal Reserve keeps up its attach on the recession the days until we start to see a recovery will come sooner than many economists predicted.
It has only been 6 months since the Central Bank was sitting with $900 billion on its balance sheet, now with nearly $2 trillion, the world knows that the Federal Reserve is serious about its convictions to get the US economy back on track.
In todays NY Times it also stated:
Fed officials have said they hope to expand the program next month, possibly to include the huge market for commercial mortgages, and both the Fed and Treasury hope the program will eventually provide up to $1 trillion in total financing.
Okay, there is more money availableso what is the big deal? The Big Deal is that now there is more funding available for lenders to do more loans to residential as well as corporate clients including small business.
The biggest question is how will the process get started? We all know that companies are not going to hire with the expectation of future orders, and consumers are not going to start buying until they know they have jobs to cover the bills they createbut someone has to go first. Any volunteers?
The start of the chain has to be with the US and Canadian Governments to start buying and starting the order process with all sectors " small, medium and large businesses. Then these companies will hire people who will then buy stuff, which will then put more people to work and so on
I am certain this will be on its way shortly as there is much planning now in both the United States and Canada to do just that, and it will not happen a day to soon either.
So the next hurdle will be for companies to get the financing they need to accept these orders. Even with the abundance of funds for companies, many companies will not qualify for bank loans due to their financials over the last couple of year.
This is the time to speak to a Professional Commercial Finance Broker as they will have far more products available to them than the banks have so you can actually accept the orders and get them out the door.
My prediction is that Accounts Receivable Factoring and Purchase Order Finance will play a huge role in our immediate economy so it will not be a bad idea to get set up for it so you are not scrambling to find a funder. - 15246
Today, the NY Times reported:
WASHINGTON " Saying that the recession continues to deepen, the Federal Reserve announced Wednesday that it would pump an extra $1 trillion into the mortgage market and longer-term Treasury securities in order to revive the economy.
If the Federal Reserve keeps up its attach on the recession the days until we start to see a recovery will come sooner than many economists predicted.
It has only been 6 months since the Central Bank was sitting with $900 billion on its balance sheet, now with nearly $2 trillion, the world knows that the Federal Reserve is serious about its convictions to get the US economy back on track.
In todays NY Times it also stated:
Fed officials have said they hope to expand the program next month, possibly to include the huge market for commercial mortgages, and both the Fed and Treasury hope the program will eventually provide up to $1 trillion in total financing.
Okay, there is more money availableso what is the big deal? The Big Deal is that now there is more funding available for lenders to do more loans to residential as well as corporate clients including small business.
The biggest question is how will the process get started? We all know that companies are not going to hire with the expectation of future orders, and consumers are not going to start buying until they know they have jobs to cover the bills they createbut someone has to go first. Any volunteers?
The start of the chain has to be with the US and Canadian Governments to start buying and starting the order process with all sectors " small, medium and large businesses. Then these companies will hire people who will then buy stuff, which will then put more people to work and so on
I am certain this will be on its way shortly as there is much planning now in both the United States and Canada to do just that, and it will not happen a day to soon either.
So the next hurdle will be for companies to get the financing they need to accept these orders. Even with the abundance of funds for companies, many companies will not qualify for bank loans due to their financials over the last couple of year.
This is the time to speak to a Professional Commercial Finance Broker as they will have far more products available to them than the banks have so you can actually accept the orders and get them out the door.
My prediction is that Accounts Receivable Factoring and Purchase Order Finance will play a huge role in our immediate economy so it will not be a bad idea to get set up for it so you are not scrambling to find a funder. - 15246
About the Author:
Wade Henderson is a recognized Expert in the Business Finance World with over 13 years Experience in the Commercial Lending Field and a strong reputation for getting the deal done. Visit his Business Finance Website to put his experience to work for you.
