Thaw in Credit Markets Trickles Down to Economy

It seems credit markets are beginning to thaw after months in a deep freeze. In a promising turn that could bolster the economy, companies are selling bonds at a pace not seen since last spring. Companies, at the same time, are finding it easier to issue comercial paper. These are the short-term loans necessary for quick access to cash.

Global sales of new corporate debt jumped to $82 billion last week. That was the highest since $103 billion in May and nearly double the level seen right before the credit crisis intensified in September. The thawing means companies such as General Electric Co and Cablevision Holdings Corp. can raise money more easily for everything from payrolls to paying down debt. This is an important shift that ultimately will benefit consumers.

It would be the outcome the government officials have been seeking for months, if the trend continues. They pumped hundreds of billions of dollars into the financial system and more could be on the way. Congress isn't too anxious to spend another 850 billion and there is a lot of discussion going on right now.

I think it is bad that they shelled out all those billions to the banks without some form of reporting, by the banks, on how they used the money. They say they can track it, but I wonder.