its over......., page-6

It has been all over since 2006.

At any rate..to those trying to pick a bottom or think issues will get better...think again.


Inter Bank rates soaring

The cost of inter-bank borrowing surged once again despite concerted efforts by central banks to resuscitate lending with substantial money-market injections.

By Peter Taylor
Last Updated: 7:56PM BST 07 Oct 2008

With banks continuing to hoard cash as concerns about liquidity evolve into outright solvency fears, the London Interbank Offered Rate, or Libor, for overnight dollar loans jumped from 2.36875pc to 3.9375pc.

The three-month dollar rate jumped from 4.28875pc to 4.32pc. Key sterling and euro Libor rates also climbed, with the overnight sterling rate up more than 75 basis points to 5.84375. Three-month euro Libor hit an all-time high of 5.37125pc.

The increases, which amount to higher costs for banks borrowing from their counterparts, came in spite of the US Federal Reserve on Monday announcing an augmented $900bn (£512bn) lending programme for banks, while the Bank of England is this week injecting another £40bn of funds against a wider range of collateral than in previous offerings.

Dominic Bryant, an economist at BNP Paribas in London, said the fall in banks' share prices was compounding negative sentiment about their capital stability and reinforcing mistrust between banks.

Banks' moves to hoard the extra funds injected into the system by central banks was likely to increasingly spill into the real economy in the coming months, Mr Bryant warned.

"The banks are just hoarding it," he said. "It's not flowing through the system, as it were. It's going to the banks and just staying there".

http://www.telegraph.co.uk/finance/businesslatestnews/3154206/Inter-bank-lending-rates-surge.html