A few weeks ago, after Treasury Secretary Hank Paulson asked for $700 Billion to bail out the financial sector, we posted the byline “We’re going to buy it all”. We weren’t kidding. Neither was he.

The Federal Reserve has now stepped into the commercial paper market in an attempt to shore up this critical funding source for companies in an attempt to keep the credit mess from affecting the broader economy. This is one of the many steps we have anticipated the Fed taking in order to try to alleviate the crisis.  Unfortunately, they have still not recognized the root causes of this problem. For a hint, all they’d have to do is look in the mirror.