The Federal Reserve is not kidding when they say that they are going to do everything within their power to help the economy recover and stabilize pricing.

As stated in the Wednesday March 18, 2009 edition of the NY Times:

WASHINGTON ” Saying that the recession continues to deepen, the Federal Reserve announced Wednesday that it would pump an extra $1 trillion into the mortgage market and longer-term Treasury securities in order to revive the economy.

This comes as sign of confidence that the recession we have all found ourselves in has fewer days than many people predicted. So long as the Fed keeps this aggressive determination toward fixing the credit markets.

It has only been 6 months since the Central Bank was sitting with $900 billion on its balance sheet, now with nearly $2 trillion, the world knows that the Federal Reserve is serious about its convictions to get the US economy back on track.

More from the NY Times:

Fed officials have said they hope to expand the program next month, possibly to include the huge market for commercial mortgages, and both the Fed and Treasury hope the program will eventually provide up to $1 trillion in total financing.

Okay, there is more money availableso what is the big deal? The Big Deal is that now there is more funding available for lenders to do more loans to residential as well as corporate clients including small business.

The biggest problem is though who will go first? Someone has to start buying but if they do not have the income to do this, what are they going to pay for the purchases with? If you go to the furniture store and buy a new couch, and do not have a job how will you pay for it? Sure the store may be able to process your order, pay its staff, order from their supplier who in turn orders the raw materials to make the couch, but at the end of the day if you can not pay for it, then no one gets paid.

The US and Canadian Governments need to start buying more since they are the ones with the money. One they get the orders in then the suppliers will start hiring and the people that are hired will start buying so the suppliers will start hiring and so on

In light of the actions at the Fed I am sure that this announcement is just a prelude to the increased purchasing by the governments and this had to be put into place first.

So the next hurdle will be for companies to get the financing they need to accept these orders. Even with the abundance of funds for companies, many companies will not qualify for bank loans due to their financials over the last couple of year.

Now is the time to sit down with a Professional Commercial Finance Broker as they will have far more financial products available to them than the banks have so you can actually accept the orders that come in and be able to produce them.

My prediction is that Accounts Receivable Factoring and Purchase Order Finance will play a huge role in our immediate economy so it will not be a bad idea to get set up for it so you are not scrambling to find a funder.

Wade Henderson is a recognized Expert in the Business Finance World with over 13 years Experience in the Commercial Lending Field and a strong reputation for getting the deal done. Visit his Business Finance Website to put his experience to work for you. Grab a totally unique version of this article from the Uber Article Directory

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