The Federal Reserve is not kidding when they say that they are going to do everything within their power to help the economy recover and stabilize pricing.

Today, the NY Times reported:

WASHINGTON " Saying that the recession continues to deepen, the Federal Reserve announced Wednesday that it would pump an extra $1 trillion into the mortgage market and longer-term Treasury securities in order to revive the economy.

Investors really liked the confidence of the Fed as the markets jumped immediately after the announcement. This is giving the sign that our fiscal recovery is not that far off in the future.

It has only been 6 months since the Central Bank was sitting with $900 billion on its balance sheet, now with nearly $2 trillion, the world knows that the Federal Reserve is serious about its convictions to get the US economy back on track.

Another note from the NY Times stated:

Fed officials have said they hope to expand the program next month, possibly to include the huge market for commercial mortgages, and both the Fed and Treasury hope the program will eventually provide up to $1 trillion in total financing.

What impact does this have? For starters, they are gearing up to help not only big business but small business and consumers. A total package to stimulate the economy. They are working hard to have a positive impact on each level of the economy and not focus on the top down method of recent years.

The biggest question is how will the process get started? We all know that companies are not going to hire with the expectation of future orders, and consumers are not going to start buying until they know they have jobs to cover the bills they createbut someone has to go first. Any volunteers?

The US and Canadian Governments need to start buying more since they are the ones with the money. One they get the orders in then the suppliers will start hiring and the people that are hired will start buying so the suppliers will start hiring and so on

Since we are seeing such bold moves on the available funds, I am certain they are gearing up to do just that. Get the money ready and then start buying.

So the next hurdle will be for companies to get the financing they need to accept these orders. Even with the abundance of funds for companies, many companies will not qualify for bank loans due to their financials over the last couple of year.

Now is the time to sit down with a Professional Commercial Finance Broker as they will have far more financial products available to them than the banks have so you can actually accept the orders that come in and be able to produce them.

My expectation is that Accounts Receivable Factoring and Purchase Order Finance will play a major role in our business financing so it would be a good idea to have your financing set up for it so you are not scrambling to find a funder when the orders are rolling in.