Forex Playmaker reports that the 3-month Libor rate for US dollar reached an 11-month high today:
The closely watched 3-month Libor rate for US dollars reached an 11-month high today, following Moody’s latest Greece ratings cut issued yesterday.
Libor for 3-month dollar loans rose to 0.539% today from 0.537% yesterday. The present rate is the highest seen since July 6, 2009.
They also note this rate has more than doubled year to date.
Here’s a chart that shows – quite strikingly – how quickly banks are re-learning the feeling of fear:
Can you say “uh oh”? (Source: StockCharts.com)
A continuation of this upward trend – which would appear to be a near certainty – would not be good for banks. Are we ready for Credit Crisis, Part Deux?
Our Partners
We publish a free daily newsletter, The Contrary Investing Report, which highlights trading and investing stories that are key to your financial success and survival. Please subscribe here.
Post Footer automatically generated by Add Post Footer Plugin for wordpress.
