Signs of Hope: Frozen Credit Markets Coming Back to Life (The Economist)

by Erin McCune on October 24, 2008

in Economic Outlook

The market gyrations continue but over at The Economist, some signs of hope:

THE world’s banking system may still be in intensive care, kept alive
largely with the help of generous infusions of capital, liquidity and
guarantees on lending from governments. Yet there are hopeful—albeit
tentative—signs of recovery.

The article goes on to cite three positive omens:

  • LIBOR is falling. Three-month dollar Libor fell to 3.535%, lowest since Sept. 24, having peaked at 4.81875% on October 10.
  • Banks are starting to loan to one another again
  • Markets for longer-term credits for banks are also gradually returning to life as institutional investors regain their nerve.

Read more here.

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