Friday, Nov 16, 2007

Credit crunch is back

The Telegraph: Market freeze to sour festivities

"Federal Reserve was last night forced to pump its biggest combined cash injection into the financial system since just after the September 11 attacks in 2001."


"London Interbank Offered Rate (Libor) surged beyond the 6.3pc level for the first time since mid-September"

Posted by sold 2 rent 1 @ 09:12 AM (462 views) Add Comment

2 Comments

1. harold said...

"Federal Reserve was last night forced to pump its biggest combined cash injection into the financial system..."

But I thought we lived in a free market?!

Doh, silly me.

Friday, November 16, 2007 11:22AM Report Comment
 

2. drewster said...

Let's not blame the central banks entirely. Before central banking was ever invented, we had runs on the bank. The whole idea of money gaining interest forever is flawed, without fiat currencies (and constant devaluation). Somebody once said that a kilo of gold bought at the birth of Christ and invested at 3% per year would today weigh more than the earth itself. The financial system needs periodic crises in order to right itself. Right now we appear to be going through one such crisis.

Friday, November 16, 2007 01:02PM Report Comment
 

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