What if banks won lend, and hoard cash to survive?
Rogers: Nothing frightens equity investors more than a credit market problem. It brings into question the issue of whether a company can finance its operations. If there is concern about that, it more or less freaks everybody out. We have seen credit markets seizing up before. Time heals some of those wounds. Some of these policy initiatives are a good step to solving some of the credit market concerns. The commercial paper market (which companies use to fund daily operations) is already working a little better. I talked to two companies yesterday (Dec. 4), General Mills and Automatic Data Processing. Both said they had no problem with their commercial paper programs. We are seeing a return to normalcy in the credit markets, and ultimately that will make other markets feel better. Duessel: There was a similar frustration with banks not lending back in the Depression despite government help. At the time, President Hoover complained to The New York Times: “Banks have not passed the benef
