Inter-bank lending has revived; Bernanke fears relapse

A crucial measure of inter-bank lending — Libor has fallen from 4.82% in September 2008 to below 1% now. That’s considered a better interest rate spread for that index.

Central Bank chief Bernanke remarked “‘A relapse in financial conditions would be a significant drag on economic activity and could cause the incipient recovery to stall.'”(1)

There are still trillions in assets that could go under water.

Note:
1. http://www.bloomberg.com/apps/news?pid=20601087&sid=a.m12rbqUFk0&refer=home

Advertisements

%d bloggers like this: