I thought this quarter's statement of my mutual funds and 401k were a disaster. I can hardly wait to see what next quarter brings.
The headline in the Post is Fears of Recession Deepen Rout. I think we have to say that the recession is here. It is just a matter of time before we feel it and how long will it last.
It is interesting to me that the media is focusing on the drops in stock markets across the world. The other story not being followed all that much is LIBOR which I talked about earlier. From the Post story:
While the stock market was the most visible sign of the distress, a more significant one may have been a rise in interest rates for short-term lending among banks. The spike came despite Wednesday's cut in the target interest rate of the world's major central banks, suggesting that banks are more fearful than ever of lending to each other.
How high is the rate:
The three-month London Interbank Offered Rate, known as Libor, hit 4.75% Thursday - its highest level since December 28. Libor stood at 2.81% one month ago.
For more on this story follow this link.
That tells the story of at least part of the reason we are in this mess. If this rate doesn't come down, we could look at even further losses.
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