The 360 Trillion Dollar LIBOR Punt
NOT every problem can be solved by throwing money at it, but as Libor falls for the third day in a row we need to keep spinning those prayer wheels and throwing the money at it.
According to Bloomberg
‘Dollar money-market rates fell after the European Central Bank, Bank of England and Swiss National Bank offered lenders unlimited U.S. currency for the first time in a coordinated effort to unlock credit markets.’
How much money, I hear you asking.
Well, governments are putting in $3 trillion in an attempt to get the money markets in general, and the dollar money markets in particular, working again.
And if you think that is a lot of money, you are quite right. But $360 trillion of loans world wide are linked to LIBOR, and the higher it stays the more likely we are to see catastrophic business failures which would make the present unemployment figures like an Elysian dream.
And the more likely the total collapse of the financial system becomes…
– Chenier
Posted: 15th, October 2008 | In: Reviews Comments (3) | TrackBack | Permalink
