Is the financial system listening to hysterical media types re the debt crisis? Apparently not. The key 90 LIBOR rate (the rate at which major banks lend to each other) is 0.25% and has been there for weeks. All is calm. On the other hand, the real crisis (the one the media types missed completely) saw that same rate spike to 4.82%, 10/10/08. The system froze to a stand still. Lending institutions trusted no one. Now, pay only 0.25% for 90 days and you’ve still got a deal.
Monitor these rates and turn off the news.
Robert Craven
No comments:
Post a Comment