Printed out of thin air:
"Dollar Libor Drops Most in Two Months as Credit Thaw Quickens
By Lukanyo Mnyanda
May 18 (Bloomberg) -- The cost of borrowing in dollars between banks dropped by the most in two months as record low interest rates and rising customer deposits quicken the thaw in lending.
The London interbank offered rate, or Libor, for three- month loans fell four basis points to 79 basis points today, the biggest decline since March 19, according to British Bankers’ Association data. It declined 11 basis points last week, the most since January.
“The rate of decline has increased the last few days and it seems there’s more money around,” said Peter Chatwell, a fixed-income strategist in London at Calyon, the investment- banking unit of Credit Agricole SA. “Things are progressing nicely. It’s looking positive.”
The availability of credit has improved as the Federal Reserve committed $12.8 trillion to stem the longest recession since the 1930s and central banks around the world cut interest rates to near zero
Full article at http://www.bloomberg.com/apps/news?pid=20601087&sid=a7W6QECPurS4&refer=home
My comment:
Easy money and low interest rates caused the problems. And the cause of the problem is also going to be the solution. rofl. What a bad joke. There will be consequences. These consequences will include inflation.
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