When the Fed said that they were going employ all available tools to promote economic recovery and to preserve price stability they were not kidding.

The latest move as highlighted in the NY Times stated:

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.

If the Federal Reserve keeps up its attach on the recession the days until we start to see a recovery will come sooner than many economists predicted.

In September 2008 the Central Bank had $900 billion on its balance sheet and now we are nearly $2 trillion which shows the world how serious the Federal Reserve is about getting the economy back on track.

More from the NY Times:

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.

Who will make the first move though? This is the major sticking point to the whole things. Until the sales orders come in at a company they are not going to hire more people and start purchasing more raw materials, so who will go first?

It will have to being with the Governments of Unites States and Canada buying more products to create these orders to get the ball rolling. Loosing up the credit requirements without the backing of the orders can cause even more economic issues when those loans are defaulted on because the people that took the loans are not working.

I am certain this will be on its way shortly as there is much planning now in both the United States and Canada to do just that, and it will not happen a day to soon either.

Next problem will be for companies to have the available funds needed to fill these orders. Even with the funds being available, most companies will not be able to get bank financing due to their financial performance over the last couple of years.

This is the time to speak to a Professional Commercial Finance Broker as they will have far more products available to them than the banks have so you can actually accept the orders and get them out the door.

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.

Wade Henderson is a recognized Expert in the Business Finance World with over 13 years Experience in the Commercial Lending Field and a strong reputation for getting the deal done. Visit his Business Finance Website to put his experience to work for you.