Pressure grows on US to take bold steps on economy

[Terri]

By JEANNINE AVERSA
Associated Press
October 7, 2008
WASHINGTON (AP) -- With panic tightening its grip on investors here and abroad, pressure was growing on the United States Tuesday to take further aggressive steps to stem the economic crisis and swiftly implement a $700 billion financial bailout.

On that front, the government is weighing a bold plan to buy massive amounts of unsecured short-term debts in a dramatic effort to break through a credit clog that is imperiling the economy.

The Federal Reserve is working with the Treasury Department on the plan to buy "commercial paper," a short-term financing mechanism that many companies rely on to finance their day-to-day operations, such as purchasing supplies or making payrolls, according to a person with knowledge of the plan. The person spoke on condition of anonymity because the plan is still being put together.

More

[makamends]

I still haven't seen any room full of something worth 700 billion, nor have spending cuts been announced. Somehow my credit will be enhanced by competing with the Feds need for 1.3 trillion plus in the credit markets? Not likely.