It has been about two weeks since enactment of the bailout legislation and the details of implementation are just beginning to emerge. Officials have announced that the Commercial Paper Funding Facility will buy short-term corporate, but not municipal debt, and that the U.S. Treasury will spend $250 billion of the Troubled Assist Relief Program funds to purchase equity interests in banks.

These initiatives are authorized under the provisions of the bailout legislation, the latter essentially an "elastic clause" that define as a "troubled asset" eligible for purchase, any instrument that the Treasury secretary, after consultation with the Federal Reserve chairman, determines the purchase of which is necessary to be purchased to promote financial market stability.

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