Three-Month Dollar Libor Falls to Lowest Since June 9

[halik]

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Three-Month Dollar Libor Falls to Lowest Since June 9, BBA Says
2008-11-04 11:47:23.900 GMT


By Justin Carrigan
Nov. 4 (Bloomberg) -- The London interbank offered rate, or
Libor, that banks charge each other for three-month loans in
dollars dropped to the lowest level in almost five months.
The rate declined 15 basis points to 2.71 percent, the
lowest level since June 9, according to British Bankers'
Association data. It was its 17th consecutive decline.
The overnight rate slid 1 basis point to 0.38 percent, a
record low for a fourth day and 62 basis points below the
Federal Reserve's target rate, BBA data showed today.
The Libor-OIS spread, a gauge of cash scarcity among banks,
narrowed 12 basis points to 211 basis points.

For Related News:
On money markets: NI MMK BN <GO>
On the credit crunch: NI CRUNCH BN <GO>

--Editor: Daniel Tilles

To contact the reporter on this story:
Justin Carrigan in London at +44 20 7673-2502 or
jcarrigan@bloomberg.net

To contact the editor responsible for this story:
Justin Carrigan at +44 20 7673-2502 or
jcarrigan@bloomberg.net

No great depression pending, also yet another empirical evidence against the prediction of austrian economics.

 

[brxndxn]

Hurray! Now I can get more loans to make the minimum payments on all my loans all while improving my house and social status!

jk

 

[Dari]

Paulbots don't want to hear this shit.

 

[JJChicken]

Nioce!

 

[smashp]

Solar is Making a Nice bull run this week. Hope it continues to the end of the year. We need capital injection into technologies of the future. Credit is a big factor in our countries ability to innovate and grow.

 

[bamx2]

Fiat Currency. Printing press are printing those $700 Billion with more to come ($3T) .

 

[LegendKiller]

Originally posted by: bamx2
Fiat Currency. Printing press are printing those $700 Billion with more to come ($3T) .

If investment into the system matches the currency generated by the system who cares?

 

[ponyo]

Credit is still a mess. If Verizon had to pay 9% to raise money, I hate to see what others have to pay.

 

[halik]

Originally posted by: bamx2
Fiat Currency. Printing press are printing those $700 Billion with more to come ($3T) .

So are all government purchases inflationary? When the defense department spends $2b on a b2 spirit bomber, is that expansionary monetary policy?

 

[halik]

Originally posted by: Naustica
Credit is still a mess. If Verizon had to pay 9% to raise money, I hate to see what others have to pay.

How long ago was that? GE said a month ago the rate they had to pay for their CP dropped 2%

 

[LegendKiller]

Originally posted by: halik

Originally posted by: Naustica
Credit is still a mess. If Verizon had to pay 9% to raise money, I hate to see what others have to pay.

How long ago was that? GE said a month ago the rate they had to pay for their CP dropped 2%

Things are easing in the ABCP market. Rates have come down significantly, although term trades aren't too common yet.

It is working.