Commercial Paper or Toilet Paper You Decide.



Posted: Tuesday, October 07, 2008

by
Undergroundresearchnetwork.com

Commercial paper by definition according to Wikipeda is as follows, "

Commercial paper an unsecured promissory note with a fixed maturity of one to 270 days. It is a money-market security issued by large banks and corporations backed only by their promise to pay the face amount, on the date specified on the note". Back in the day, when a man gave his word, there was no question that he had every intention to fulfill his commitment. You've herd the expression my word is my bond. Now the word bond has been substituted for bail out, and commitment and traditional values go right out the window.

I never thought I would see the day, when major banks that have been in business since the creation of water, go belly up at the blink of an eye. One comedian put it this way, "I'll write you a check, but I think my bank bounced yesterday". It's hard to tell which way the financial rollercoaster will end up. For many of us were sitting in the front seat, of the bailout express with no seat belts, there is no one at the controls and were approaching another humongous drop down into oblivion.

Those who want to purchase a house can't buy one. People who own houses can't keep them, foreclosures are through the roof, CEO's that run their companies into the ground open there golden parachutes, and float off into the sunset, while wall street is in financial meltdown mode.

Doing research for this article I came across some interesting points.

Commercial Paper is an unsecured promissory note issued by industrial, commercial, or financial companies. Investors lend the issuer money for specified number of days at a specified interest rate. Let's translate that into the real world, shall we? You go to a bank and ask for a loan with no collateral, no assets, and no proof of income verification what so ever.

In the real world how far do you think Joe Public would get with this financial plan?

The sad truth is not far at all. On the other hand what applies to an individual does not apply to major banks across America. Even though the rules have been changed to favor those banks and corporations with deep pockets, the results have been the same, total disaster.

The Economic devastation has been so great; it has been felt through out financial markets all over the world. Just to make a quick buck at the tax payer's expense, some have jeopardized the lives of millions of families all across America. A friend of mind said he lost over $140,000 from his 401K. I'm so mad with my friend for loosing that kind of money for two very important reasons.

1. Why didn't he show me how to make that kind of money, are we friends or what?

2. Now I can't ask him for a loan, because he is just as broke and desperate as I am!

So what will be the final results? Who knows the Commercial Paper, may be only good for toilet paper, only the future can tell.

I would like to write more about this subject, but unfortunately I have to go, I'm late for my second job.

Stay Informed, Tony James http://www.icansurvivecancer.com
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