Banks will also have access to short-term money to deal with "exceptional market stresses".
Under him, the Federal Reserve fuelled the housing boom by sharply cutting the cost of short-term money.
They are happy to stay on the side-lines and collect their interest while contributing minimal amounts of new short-term money.
Commercial paper, which enabled companies to raise short-term money at a cheaper rate by bypassing banks, proliferated in the 1960s.
Some are looking for a better alternative for their short-term money than cash, which is earning almost 0% and less than inflation.
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Commercial paper became the rage in the 1960s as a means of borrowing short-term money and saving interest costs by bypassing the banks.
As in Ireland, the interest rates on most of these mortgages are variable, linked to the rates on offer to banks in short-term money markets.
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The commercial paper market is growing increasingly antsy and GE, not unlike a hedge fund, is stuck with some percentage of long-term assets that it is trying to fund with short-term money.
For Hester it is not so much about the short-term money but the long-term achievement and satisfaction he would derive should he rebuild RBS to a state where it would be able to disengage from the government.
Also pressuring the market are expectations that funding conditions in China's short-term money market will get tighter toward the end of the year, when demand for cash typically surges for gift purchases and bonus payment, analysts said.
If you mingle the short-term money with the emergency money, before you know it you'll be raiding the emergency fund for things like new furniture or that pesky annual insurance premium you forgot to budget into this month's cash flow.
Ms. McCLANAHAN: Well, the safest thing, especially for short-term money, is to put into CDs - and I would just use short-term CDs right now interest rates being so low - you could use money market funds, money market mutual funds.
It will be used to bolster foreign-exchange reserves depleted by a failed attempt to prevent devaluation of the Thai currency, the baht, and further threatened by the flight of short-term foreign money.
After a decade of junk-bond fueled takeovers and financial deregulation, Bush Senior took office just as the bill was coming due for all the short-term debt fueled money-making that created the illusion of prosperity in the 1980s.
The Fed instead extended its Operation Twist program aimed at keeping long-term borrowing costs low by selling short-term Treasurys and putting the money into long-term bonds.
Broadly speaking, short-term Treasuries can be expected to have more in common with money market rates than long-term Treasuries, but deciding which short-term Treasuries match up best with money market rates can be a tricky thing.
The short-term effect that money creation has on interest rates will affect investment patterns, often setting us up for future reversals.
This is especially bad news for banks because a major source of profits for money-center banks is the ability to borrow money at short-term rates and lend at long-term rates.
For savers, this means regular bank deposits, money-market funds and short-term Treasurys effectively lose them money each year.
WSJ: Upside: Looking for Inflation Protection? Take TIPS off Your List
But because banks are using central-bank liquidity to plug holes in their short-term funding, the money multiplier is collapsing: even as reserves swell, broad-money and credit growth is wilting.
These crises were not caused by money that was too stable in value, but rather a short-term inflexibility of the base money supply around the harvest season.
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In other words, money going into U.S. short-term debt today is either losing money, or returning barely above inflation.
In addition, regulators have unveiled all sorts of programs to backstop the short-term lending markets, money market funds, bank deposits and bank debt.
In most 401(k) plans, to move money from a stable-value account into a money-market fund or short-term bond fund, plan participants have to be invested in a riskier option for at least 90 days.
Banks, as Mr Smithers points out, essentially take two risks: credit risk the risk that a borrower won't pay the money back and what is succinctly dubbed maturity-transformation risk taking in short-term deposits and lending the money out for a longer term at a higher rate of interest to companies or the government (by buying government bonds).
College-savings professionals recommend money-market and short-term-bond funds.
The story is similar with its top bond fund, the Virtus Multi-Sector Short Term Bond Fund, run by Virtus-owned money manager Newfleet Asset Management.
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They are figuring the costs into their planning, but do not expect any short-term revenues from real-money gaming for now.
As a result, one source of profit, taking short-term deposits and lending the money for longer at higher rates, has dried up.
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