orrowing costs remain high The costs for banks to borrow money from each other remain at highly elevated levels in spite of the global government action taken to cure the paralysis at the heart of the financial system. Stubbornly high interbank lending rates indicate that tensions remain in the money markets even though the US, UK and various European governments have pledged to inject capital directly into banks and guarantee many types of bank debt. Analysts said that while stock markets had rallied and the cost of protecting bank debt against default had tumbled by record amounts in the US, it would take time for the reduced costs of what is in effect government-sponsored funding to show through. Three-month Libor, the most important interbank lending rate that is used to price loans, derivatives and many other kinds of financial products, has barely moved in sterling markets, which have had full details of the UK government guarantee since Monday morning.
The costs for banks to borrow money from each other remain at highly elevated levels in spite of the global government action taken to cure the paralysis at the heart of the financial system.
Stubbornly high interbank lending rates indicate that tensions remain in the money markets even though the US, UK and various European governments have pledged to inject capital directly into banks and guarantee many types of bank debt.
Analysts said that while stock markets had rallied and the cost of protecting bank debt against default had tumbled by record amounts in the US, it would take time for the reduced costs of what is in effect government-sponsored funding to show through.
Three-month Libor, the most important interbank lending rate that is used to price loans, derivatives and many other kinds of financial products, has barely moved in sterling markets, which have had full details of the UK government guarantee since Monday morning.
banks now have the interesting PR challenge of persuading the average shmoe that though they don't trust each other, we should still trust them, at the same time as our hard won savings are tanking...
crank up the lie-factory, bernays to the rescue!
well the scam worked great so far...paulson still has his skin, and if the banks want more, well, we'll have to give it them, because we wouldn't want the apocalypse, would we now, hint hint nudge nudge..
'politicians, we pay you to face the crowds...that's why we're bankers after all, we leave the spotlight to you who love power but are too dumb to be bankers, like us, heh heh, _do collect as money as possible as you pass GO, cigars all round.
charles, warm up the copter, we may have to make a rooftop escape tonight, when those suckers run out of bailout money there'll be no more bones to pick here, and it sure ain't our heads that will end up on pikes, cuz we're gone, like a warm bahamian breeze' ~"When an inner situation is not made conscious, it appears outside as fate." Karl Jung~
(counterfeit because the money was created through credit by skirting banking regulation and thus making the central banks lose control of monetary policy: it's money that should have never existed) A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
