down 420pts not looking good, page-2

hi ace

this is very disappointing, if we haven't been hammered enough. but i will say we may see another bounce fairly soon i hope.

both Libor 3 month & Libor 1 month are at record lows still the banks haven't yet thawed out to a point where cash is being thrown around.

we desperately need some liquidity in the market.

"Bank lending still remains somewhat restricted as the European central banks slashed interest rates. However, LIBOR has dropped to the lowest level in four years signaling that the worst is over . As CNN reports this means that although banks are loosening up lending to each other, they are still reluctant to lend to customers. The TED Spread, which determines how much cash is available for lending between banks, is decreasing, which is a good thing. The larger the spread, the less cash is available for lending. Meanwhile, the VIX increased, illustrating uneasiness in the markets as investors await President-elect Barack Obama's new administration and Cabinet. - Maria Woehr"