Friday, October 26, 2007

Asset-backed commercial paper dwindles again

The credit crunch shows little sign of slowing down. Reuters reports today that asset-backed commercial paper shrank again last week. That's the eleventh consecutive week.

That shrinkage translates to one-half of one percent. By itself that's a rounding error. But in the overall picture, it means there continues to be less money to lend, and hence, that money's going to be more expensive.

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