Debaser

Interesting article:

McBailout?

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Message CM47: Let's go pay some hookers to knock our junk around.

farmergiles

Can I has bailout plz?

Seriously though, Harley Davidson? No wonder they can get away with regurgitating motorcycle designs from the 30's.

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Dr. Nick Nasty

this is the complete financial-ization of our corporate-statist system at its logical end-total collapse. Remember when the country made things? If you do you're older than me.

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HTAM

Stop


These are Commercial Paper investments. Commercial paper is used to fund operating expenses and current assets. Current assets are anything that can create cash in a 12 month period.

They are short term investments ranging from 1 to 270 days.

They are essentially money market securities.

These are not backed by collateral, so the issuing companies (MCD, VER) who the dealer (The Banks) buys from must have VERY HIGH credit ratings to engage in these transactions. That means, they are a sure thing to repay.

They have fixed maturity, which means there will be interest paid in full
plus principal on the date of maturity.

They are common short term loans that are made everyday.
All the time, for years and years now, by hundreds or more, of billion dollar companies.

There is a lot of money to be made. Basis points in transactions like this add up quickly. 1 point=$10k USD per $1 million USD. Daily transactions probably generate millions in fees alone.

Commercial paper is sold at a discount and carries a higher return than bonds.

So the Fed, probably laddered commercial paper, and everyday, gained 'x' amount of basis points in interest. That's return on investment, friends.

The author of the article is a moron.

zerodown

this is just the released information(the tip of the iceberg)

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We have to learn to unlearn
Its not contradiction, its amendment
Not everything we see is reality
Not everything we hear is the truth
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Debaser

Well I'm no economist or financial wizard, but that sounds like some kind of scam to me, I bet if "regular" people (and not billion dollar companies) were to do something like this, it would be considered illegal.

__________________
Wouldn't it be great to heal the world with only a song?

Message CM47: Let's go pay some hookers to knock our junk around.

zerodown

The IMF is currently at the top of the gigantic ponzi scheme called globalization.

The fed is below them, the fed is just at the top of the ponzi scheme called "government of the united states of america".

__________________
"I've seen people so poor all they got is money."

We have to learn to unlearn
Its not contradiction, its amendment
Not everything we see is reality
Not everything we hear is the truth
Not everything we're taught helps us grow
~Cultura Profetica

"La locura se lleva en la cabeza y las drogas en los bolsillos"
~Roberto Iniesta

HTAM

It's not a scam and this has been going on for decades.

I'm not attacking your post, I'm attacking the spin the author of the article put on it, dude.

Commercial Paper is an economic indicator. When more transactions occur it means the company is hiring employees and/or stocking up on inventory.

In 2008, there was a massive shrink in capital made available by investors because they were skeptical about loaning any money out when some very large companies were 'too big to fail.'

Here is a more accurate explanation of the same data.

US Commercial Paper Tumbles On Seasonally Adjusted, Unadjusted Basis - WSJ.com