17.9.08

Real credit crunch

Three-month LIBOR, sort of a traded version of the federal-funds rate, a rate that historically tracked the funds rate, spiked to 3.0625% from 2.87625% Tuesday, putting it more than a full percentage point higher than the funds rate. It suggests that liquidity is tight, as banks do not want to lend money to each other.

http://blogs.wsj.com/marketbeat/2008/09/17/bailouts-and-earnings-sour-early-market-mood/

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