CNBC Rumor / Report that FED Will Enter Unsecured Debt Market

Update: Waiting for more info. Special Purpose Vehicle/Entity being proposed for a Fed / Treasury JV to buy commercial paper.

Original Post:

I am still trying to find written confirmation of the CNBC report late yesterday that the Fed will begin accepting unsecured debt instruments as collateral. If true, the Fed Chairman has shown by his actions that he deems these assets as necessary. You can expect the Secretary of the Treasury to follow suit shortly and commit part of the $700B to that asset class as well. So much for mortgage related! However, if these instruments are in fact commercial paper which is the lubricant that literally keeps merchandise on store shelves, food in the grocery store, enables payroll disbursements, etc., it addresses the crisis more effectively than the “The Bailout” as sold. I just don’t appreciate all of the lying to get to this point.