Linky
What little credit we have in Europe is drying up.
Uh huh, and that will be why the European bailout just happened.
So how long before the QE and bailout money dries up?
I think we should tighten our chin straps.
What little credit we have in Europe is drying up.
The key three-month U.S. dollar Libor moved higher once again Tuesday, continuing the recent upward trend as banks add an extra risk premium to interbank lending rates against the backdrop of Europe's sovereign debt crisis.
"There has been quite some volatility in required [liquidity] or demand for liquidity," said Matteo Regesta, a strategist at BNP Paribas. "Funding conditions remain tight but there has been a kind of panic on the back of the sovereign risk. Libor/OIS has been an indicator of liquidity demand, but nowhere near earlier crisis levels."
So how long before the QE and bailout money dries up?
I think we should tighten our chin straps.
Comment