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Lower rates lift spending by more when there is access to borrowing.
Medium-sized companies said access to borrowing was easier, but more expensive.
In the market's plunge last year, when access to borrowing was severely restricted, the packages became untenable.
Financial globalisation spread capital more widely, markets evolved, businesses were able to finance new ventures and ordinary people had unprecedented access to borrowing and foreign exchange.
In the worst-case scenario, the government's access to borrowing will be cut off, creating a cash crisis that throws the nation into chaos.
In effect, JPMorgan Chase operates with the implicit backing of the United States government – primarily in the form of actual and potential access to borrowing from the Federal Reserve, with the implication that the Treasury could also provide support.
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Hedge funds depend on access to borrowed money.
But giving the superrich increased access to borrowed money has raised eyebrows across the rest of the lending market.
Accepted wisdom in hedge fund enclaves like Greenwich, Conn., and the Mayfair district of London contends that hedge fund operators benefit from volatility because they can use their wits, flexibility and access to borrowed money to take advantage of sharp market dislocations.
With credit drying up, Goldman Sachs and Morgan Stanley made the change to bank holding companies, which will allow them to take deposits to fund operations, while providing permanent access to borrow money from the Federal Reserve.
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