Commercial paper is short-term debt issued primarily by banks and large businesses, often just for a few days. The rate shown here is for "top-tier" companies, or those with the best credit ratings. High rates have made it more difficult for business to obtain the money they need for everyday expenses.
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indicate less willingness to lend to businesses. Yields on junk bonds have jumped, signaling an aversion to risk.
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--the London Interbank Offered Rate--is what banks charge one another for short-term loans. It is the basis for many financial contracts--including home mortgages and student loans--and it is a sign of whether banks trust each other. Higher rates mean banks are less willing to lend to one another.
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and a three-month Libor is a measure of stress in the credit markets. By historical standards, the spread has been high all year: it averaged about 25 basis points (0.25%) from 2002 to 2006. Higher spreads are signs of anxiety.
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Investors have taken money out of stocks, bonds, and money market funds to buy safe assets, forcing the yield on short-term
Treasury bills down. A lower yield indicates greater concern about the financial system.
So, I was reading the Times piece about the McCain-supporting couple in Park Slope this morning, and I thought, Couldn't they at least pick a couple who looked like a New York couple? Do they have to be fat hicks? Can't you show us some Republicans who don't look like the stereotype? There must be some reasonably good looking, non-obese Republicans in New York!?
