There's defintely something odd happening in the banking system. The banks don't want to lend to each other. At a guess that means they have nasties on their balance sheets and suspect everybody else has the same nasties. The average person doesn't understand. I guess we should ask the question, why should we lend to the banks when they are not lending to each other. It looks like a red flag has been raised. This credit crunch is being driven by the fear within the banks themselves, not by interest rates.
