“The credit window is closed.”
Jim Press, president of Chrysler LLC
The TED spread is at a record 3.62.
And from Bloomberg: Libor Soars, Commercial Paper Slumps as Credit Freeze Deepens
The Libor- OIS spread, the difference between the three-month dollar rate and the overnight indexed swap rate, widened to a record 260 basis points today. It was 197 basis points a week ago and 79 basis points a month ago.
…
The market for commercial paper plummeted $94.9 billion to $1.6 trillion for the week ended Oct. 1 as banks and insurers were unable to find buyers for the short-term debt …
The NY Times quoted Chairman Bernanke as saying on Friday, Sept 19th:
“If we don’t do this, we may not have an economy on Monday.”
Well, we still have an economy, but it is clearly in tatters …
Can someone explain to me why we can’t create a system where the Fed loans directly to businesses and consumers?
The fundamental problem I think is that we have a government institution setting interest rates and then market forces running around trying to play catch-up.
Either the market should set interest rates or the government should socialize the entire credit process.
Can someone explain to me why we can’t create a system where the Fed loans directly to businesses and consumers?
The fundamental problem I think is that we have a government institution setting interest rates and then market forces running around trying to play catch-up.
Either the market should set interest rates or the government should socialize the entire credit process.
Can someone explain to me why we can’t create a system where the Fed loans directly to businesses and consumers?
The fundamental problem I think is that we have a government institution setting interest rates and then market forces running around trying to play catch-up.
Either the market should set interest rates or the government should socialize the entire credit process.
Can someone explain to me why we can’t create a system where the Fed loans directly to businesses and consumers?
The fundamental problem I think is that we have a government institution setting interest rates and then market forces running around trying to play catch-up.
Either the market should set interest rates or the government should socialize the entire credit process.
Can someone explain to me why we can’t create a system where the Fed loans directly to businesses and consumers?
The fundamental problem I think is that we have a government institution setting interest rates and then market forces running around trying to play catch-up.
Either the market should set interest rates or the government should socialize the entire credit process.
