Libor (which is publicly available here with 1 day delay) is on the run. Something horrible just happened with 1-month rate, which went from 4.82% to 5.22% in one day. That could be an all-time record of panic. The 3-month rate climbed to 5.12% for a spread of 62bps above Fed target rate.
The stock market is very stupid and it will not pay attention to Libor until the chain reaction leads to something more understandable to stock traders. Like some kind of blowup or default, which will probably happen in 4-8 week timeframe. I’m bullish for now.
For now the conclusion is very simple: I put the chance of Fed rate cut in December at 90%. They just have to cut facing the next wave of financial meltdown
November 30, 2007 at 7:19 pm
[...] by Bob Morris on November 30, 2007 Yet the stock market ignores it (so far.) But how much longer can such willful ignorance last in the face of a credit crisis? If [...]
December 1, 2007 at 11:47 am
he// to the yeah, cut baby cut! R/E shoppin’!
December 1, 2007 at 3:03 pm
Why doesn’t the state charge the banks that have foreclosed on many homes the top market value tax rate of the home before the market crashed. I mean whos fault was it anyway and, besides their gonna lose money anyway! they will just write it off anyway.Still sunny in California
December 2, 2007 at 1:16 am
[...] it is often used as the basis for other interest rates such as for mortgages and credit cards. Libor is on the run. Something horrible just happened with 1-month rate, which went from 4.82% to 5.22% in one day. [...]
December 3, 2007 at 1:52 am
Since an interest rate cut would take money from those who have worked hard to save money in IRAs and bank accounts, and an interest rate cut would help the fat cats on Wall Street, yes, there will probably be a cut.
Retirees don’t have lobbyists who actually represent their interests with the Fed, but Wall Street has plenty of lobbyists doing just that.
December 3, 2007 at 5:48 am
now if they’d only get off their ars and fix this AMT issue. many of us are in a world of on this one.