Overnight money market rates rose in Asia. The 'Paulson Plan' - $700 billion - is about adding liquidity. If it was working money markets would stabilise or fall. The problem this causes is that banks cannot or will not lend. That seizes-up commerce.
Why is this important? Individuals cannot borrow to spend. Businesses ultimately serve individuals. Businesses cannot borrow to run their business, and either have to curtail operations or go bust.
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