WASHINGTON (AP) - The government is considering a bold plan to
buy massive amounts of unsecured short-term debts in a dramatic
effort to break through a credit clog that is threatening the
economy.
The Federal Reserve is working with the Treasury Department on
the plan to buy "commercial paper." That's a short-term financing
mechanism that many companies rely on to finance their day-to-day
operations, such as purchasing supplies or making payrolls. Tha's
according to a person with knowledge of the plan. The person spoke
on condition of anonymity because the plan is still being put
together.
The market for this crucial financing, which relies on investors
rather than banks, has virtually dried up.
Asian markets show signs of life, some recover
SEOUL, South Korea (AP) - Asian stocks are showing signs of life
after opening sharply lower.
Several markets climbed into positive territory or pared losses
after a global market rout the previous day.
Australian stocks jumped after its central bank cut interest
rates by a bigger-than-expected 1 percentage point to 6 percent in
response to the unfolding global financial crisis.
Japan's benchmark Nikkei 225 index erased some losses after
briefly falling over 5 percent to below 10,000 for the first time
in almost five years.
Markets in South Korea, India, Singapore and Taiwan all edged
higher. Trading in Hong Kong was closed for a holiday.
Investors in Asia said they were encouraged by a late day rally
on Wall Street that cut down a major loss earlier in Monday's
session as well as overall sentiment that Japanese stocks had
fallen too far too fast.
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