That is correct mr recession/depression. Very gloomy username btw. Rogue - trained as a lawyer & used to work in securitisation and LBOs before moving to the investment side of things. Now I primarily invest for myself and a few others.
Some stabilising news from europe:
12 September 2007 10:12 PM Reuters News English (c) 2007 Reuters Limited
LONDON, Sept 12 (Reuters) - London interbank lending rates showed tentative signs of stabilisation on Wednesday with rates for overnight dollar deposits hitting their lowest level since mid-August, just before the recent liquidity squeeze began.
Data from the British Bankers Association and Reuters showed overnight dollar Libor rates were fixed at their lowest since Aug. 16, falling below the Federal Reserve's Fed funds target rate of 5.25 percent.
Libor rates for three-month euro fell slightly on the day, after the European Central Bank lent banks a record 75 billion euros in extra three-month funds earlier -- only the second such three-month liquidity injection is has ever conducted.
But three-month euro rates are still far above the ECB's benchmark rate of 4 percent. Sterling three-month rates, which also edged down on Wednesday, remain more than 100 bps above the Bank of England's benchmark rates.
"Libor is not just banking problems. It relates to funding costs of corporates and other borrowers. For a broader economy this effectively means 100 bps tightening (in UK rates)." said Meyrick Chapman, fixed income strategist at UBS.
Libor overnight dollar rates at the daily fixing fell to 5.18125 percent from 5.29875 on Wednesday. This is the lowest level since Aug. 16, a day before the Fed cut its discount rate.
Libor three-month euro rates fell to 4.74375 percent from Tuesday's 4.75375 percent.
Three-month sterling rates edged down to 6.90250 percent from Tuesday's nine-year high of 6.90375 percent.
Interbank lending rates for major currencies have risen since mid-August as banks grow reluctant to lend to each other and hoard cash due to uncertainty over the valuation of complex products with exposure to U.S. subprime mortgages or the beleaguered asset backed commercial paper market.
RHG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
