Loanable funds are still frozen, frozen, frozen. Perhaps the credit markets should be relocated to the Sun’s surface, where its 5,780 Kelvin temperature (really hot) will sooth the credit markets’ frozen bones.
Here is yet another sign that credit problems persist and that the credit horizon does not look good.
“AT&T Inc. (T, Fortune 500) Chairman and CEO Randall Stephenson said Tuesday that his company was unable to sell any commercial paper last week for terms longer than overnight. Commercial paper, which helps lubricate the flow of business operations, is a short-term IOU available to corporations that banks usually know are good for the money.
It's not that short-term borrowing is unreasonably expensive, Stephenson said. A shortage of buyers for the debt means such borrowing is not as readily available as it had been even three weeks ago, he said.
'It's loosened up a bit, but it's day-to-day right now. I mean literally it's day-to-day in terms of what our access to the capital markets looks like,' Stephenson said. AT&T spokesman Larry Solomon said later that as of Tuesday, the company has ready access to the commercial paper market at reasonable rates and various terms.”
If AT&T – with its 71.4 million wireless customers and more than 150 million total customers – can’t secure credit for longer than a day, what business can?