The debt ceiling impasse has already begun to rear its ugly face in short-term credit markets.
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The next is to convince foreign banks to restore their short-term credit lines to Brazil.
During South Korea's financial collapse, the banks agreed, after pressure from governments, to restructure short-term credit lines.
For many people a payday loan is a quick and efficient legal way of getting hold of short-term credit.
Over the course of the crisis, the Fed has taken a number of extraordinary actions to ensure that financial institutions have adequate access to short-term credit.
In classic European style, on July 9th it secured from its banks a new short-term credit line that should see it through the next few months.
Like Accept.com, PayNearMe began as something else--a service offering short-term credit in the social gaming world--until Shader heard whispers that Facebook planned to offer a similar service, forcing him to switch gears.
As a practical matter, Moscow's ability to attract interbank deposits, renew short-term credit lines and secure Western loans has been sharply curtailed by the Soviet Union's non-creditworthy status and its massive arrearages to Western firms.
With commercial banks gradually pulling their interbank and short-term credit lines from Soviet institutions and completely cutting off medium-term lending, the Kremlin's authorities are tempted, if not compelled, to take on higher pay-off banking transactions internationally.
U.S. money-market funds that provide short-term credit to European banks will suffer major losses (about one third of their bank loans are in Europe.) And the operations of big U.S. companies that hold European bonds, or rely on short-term credit, will screech to a halt.
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Analysts at Brown Brothers Harriman said what will be watched is that the International Monetary Fund may allow a plan to make short-term credit lines available to fundamentally sound countries and for discussions about developing nations kicking in more money to the IMF, which would be used to increase lending to Europe.
In 1991 it stopped providing short-term export-credit guarantees, spinning off the business to what is now the privately owned Atradius.
That means finding ways to persuade banks to roll over loans (stopping, in particular, the sudden withdrawal of trade and short-term interbank credit lines).
To reap the long-term benefits of financial reform, China must endure the short-term pain of a severe credit crunch--just as it needs to support industry to curb labor unrest.
Consumer credit is almost wholly covered within the bank credit data, as are most other types of credit that fuel short-term growth, so total bank credit provides a better idea of what is happening right now regarding home purchases, car financing, education loan funding and credit card use among other things.
Against that, a big lesson from the crisis is not to rely too much on short-term interest rates to rein in credit and home-loan booms.
That same data could also reveal a customer's need for a savings account, short-term loan or new credit card.
Hopefully, we are getting back to a mentality where we only buy what we can afford without taking out a short-term loan sometimes called a credit card transaction.
For example, we could increase the duration of our investment portfolio, we could go out and buy a lot of securities that have good short-term yield but have higher credit risk.
The other three trade bodies that agreed to the new charter are the BCCA, a trade association for lenders offering short-term loans, the Consumer Credit Trade Association and the Finance and Leasing Association.
The only difference under quantitative easing is that the purchases probably focus on longer-term Treasury securities rather than short-term Treasury securities hoping to push longer-term yields down a bit as well as get credit and money flowing again.
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There is a fine line between forcing banks to have enough capital to protect themselves and their depositors against all realistic losses, and setting that capital ratio so high that - in the short term at least - the banks starve the economy of vital credit as they build up their capital.
Although liquidity crises are short-term emergencies and macroeconomic stability is a medium-term goal, locked credit markets soon have wider economic effects.
They are pitching everything from credit cards to short-term installment loans for motorcycles and appliances.
Furthermore, worries about property bubbles and excessive credit expansion present short-term headwinds to Chinese demand.
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For Hayek and the Austrians, things go wrong when a central bank sets short-term interest rates too low and allows credit to expand artificially.
The commission wants the Fund to restrict itself to short-term loans for economies in crisis at higher-than-market interest rates, rather than long-term concessional credit to cover balance-of-payments deficits.
These things are well worth the price for the short- and long-term power of tax-rate reduction, sound currency and unclogged credit arteries.
The unbanked often use expensive cheque-cashing services, and they have little access to cheap credit, forcing them to approach moneylenders for short-term cash.
There's rate risk in this spread (short-term rates could shoot up) but no credit risk.
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