“Let the chips fall where they may.” (redsand)

The short-term credit market has completely collapsed.

The Federal Reserve has lost control of the money supply. No matter how much liquidity the Fed pumps into the system, banks are still unwilling to lend to one another. Many financial institutions are shutting down existing lines of credit to otherwise healthy businesses. Main St will also be affected as banks make it more expensive to get mortgages and car loans. Banks will not offer home equity lines of credit, and they will begin to demand payment on the lines they have outstanding. Families that borrowed off their home thinking they could pay it back over a span of years will be forced to come up with the cash immediately.

There are many problems with this attitude; number one, many people will not get their paychecks. It is a common practice to take out short term, low rate loans to meet payroll expenses. Vendors will not be paid for the same reason.