Where’s The Next Front For The Credit Crisis?

From Bloomberg:

California Governor Arnold Schwarzenegger says his and other states may need emergency federal loans as funding dries up.
Bernanke announced new moves today aimed at easing the lending crunch. The Fed will double its auctions of cash to banks to as much as $900 billion and is considering further steps to unfreeze short-term lending markets.
Gannett, the largest U.S. newspaper publisher, said Oct. 1 it drew on a revolving credit line to ensure it had funds to repay its commercial paper.
Duke, Caterpillar
Lending between banks is also seizing up. Republican Representative Jerry Moran of Kansas, in an interview with Bloomberg Television, encouraged the Fed to consider guaranteeing loans between banks.
Fed Powers
The central bank has power to extend credit to any company under “unusual and exigent circumstances.” Investors anticipate the Fed will cut rates in an attempt to lower borrowing costs and encourage banks to lend. State and local governments having trouble meeting cash needs may push for help. “If states can’t access the credit markets because of market conditions, then the Treasury should consider providing it,” said Ben Watkins, a member of the debt committee of the Government Finance Officers Association, a group of public finance officials.
Services Endangered
Market disruptions forced Oregon to cancel a $21 million sale of bonds for the state university system and several other planned issues are in jeopardy, State Treasurer Randall Edwards said. Since 2005, New York Fed President Timothy Geithner has been pushing to reduce risks in the $54.6 trillion credit-default swaps market.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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