Watch out for the LIBOR rates – they are rising fast these days. The LIBOR rate is the rate charged by banks to lend to each other. A reminder: the LIBOR rates exploded just before the crisis hit in October 2008. Credit froze up and since our economies are debt based – they need on going credit to function. Money markets are now showing rising levels of mistrust between Europe’s banks on concern that the $1T bailout is not enough and that default (or if you prefer – restructuring…) will occur. Their concerns rest in part on the fact that …
Read MorePosts Tagged ‘Monetary policy’
Monday, May 17th, 2010 Tags: Central banks, Euro, European Economy, Financial Crisis, Inflation and deflation, Monetary policy, word economy
Category: European Debt Crisis, Money & Banking No Comments 
