The US Federal Reserve is now bypassing the banking system, and dealing directly with major corporate borrowers. These have been cut off from many sources of credit, as banks hoarded their cash.
The impact has been immediate, with 1500 transactions already done for a record $67bn - 10 times last week's daily level. This should provide major help for companies, as it frees up their ability to undertake normal day-to-day operations. Equally encouraging is the fact that it also caused a 20% fall in 90 day borrowing rates, to an average 2.55%.
The blog warmly welcomes this latest move to unblock credit channels. If followed by other central banks, it should mark the end of the Panic that has frozen most all financial markets since Lehman's failure last month.