WSJ is reporting that many companies like GE, Verizon, and Microsoft are lobbying congress to pass the bailout package.
Corporate-bond issuance in the quarter plunged to $76.7 billion from $337.3 billion in the second quarter, according to figures from Thomson Reuters. Companies overall were forced to reduce their borrowings on the short-term commercial paper market by $212 billion between the end of February and last Wednesday, as investors continued to back away from the corporate IOUs.
Randall Stephenson, AT&T Inc.'s chief executive, said the telecom giant's access to short-term commercial paper was limited to overnight loans for a few days last week. An AT&T spokesman said the situation has since improved and the company now has "full and ready access" to such credit for longer terms and at "reasonable rates."
You can imagine how bad it must be if the largest telecommunications company is having trouble selling short-term debt.
The finance arm of Caterpillar Inc. last week sold $1.3 billion of bonds in a two-part offering. The world's largest maker of earth-moving machinery is rated single-A, but the company said it had to offer yields upward of 6% and 7% to lure investors. In August, Caterpillar issued $300 million in bonds at a yield of 4.9%.
These are top companies that are having problems raising money.
We probably need some kind of a bill to pass. But I would rather congress take its time, have good economists give their views and then pass the bill. We need to make sure we are not just throwing away $700 billion.
http://online.wsj.com/article/SB122281874953692447.html
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