The availability of credit from the Federal Reserve and the insurance against severe downside risks from the Treasury should buoy demand for securitized debt and thus help bolster the flow of credit to households and businesses. A shortage of funding has not been the only factor impeding the extension of credit.
Lenders have been concerned about counterparty risk and about conserving their own capital against unforeseeable events. We can't deal with those concerns through our lending because we do not take appreciable credit risk.