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" The Credit Crunch Has Reached A New Intensity "

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http://www.telegraph.co.uk/money/main.jhtm...cncredit111.xml

Credit squeeze grows to worst for 20 years as cost of borrowing hits new high

By Edmund "Ed" Conway and Philip "Phil" Aldrick

Last Updated: 1:04am BST 11/09/2007

The credit crunch has reached a new intensity, with the cost of borrowing money in London's money markets hitting a new high in spite of the Bank of England's attempts to cool the system by pledging to inject more cash.
Subprime crisis in full in our special section
Interest rates and mortgages: latest news , views and tools
Loans hike warning for small firms
Jean-Claude Trichet, president of the European Central Bank
It coincided with news of the first collapse by a British sub-prime mortgage company as a result of the market meltdown. Victoria Mortgage Funding, a small lender, has been placed in administration after funding lines dried up.
The London Interbank Offered Rate (Libor), the key measure of how much money costs on the City's open market, increased again yesterday, with the three-month rate, an important yardstick for business borrowing costs, particularly affected. It widened by almost a full basis point (0.01pc) to
6.89625pc
, meaning the three-month Libor is currently the highest it has been above the Bank of England's base rate for 20 years.

Now that our first subprime bank has failed the VIs will be unable to claim that its different here.

Will Brown step in the subsidise loans as his miracle has relied on cheap and easy credit. Without it the miracle will implode. Merv may be told to cut a full 100 BP at the next muppetry session?

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It's worth pointing out that Victoria were not a bank of any sort - they didn't take customer deposits and were not authorised as a bank so no retail investors have lost any money here.

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Worth mentioning that if anyone wants to check LIBOR, there's a website here that includes the daily updates:

http://emecklai.com/mecklai/newweb/MarketR...Rates.asp#libor

The BBA make a subscription charge for daily updated LIBOR stats, so the above is quite useful. www.swap-rates.com appears to only be updated with the weekly stats, which are free.

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http://www.telegraph.co.uk/money/main.jhtm...cncredit111.xml

Credit squeeze grows to worst for 20 years as cost of borrowing hits new high

By Edmund "Ed" Conway and Philip "Phil" Aldrick

Last Updated: 1:04am BST 11/09/2007

The credit crunch has reached a new intensity, with the cost of borrowing money in London's money markets hitting a new high in spite of the Bank of England's attempts to cool the system by pledging to inject more cash.
Subprime crisis in full in our special section
Interest rates and mortgages: latest news , views and tools
Loans hike warning for small firms
Jean-Claude Trichet, president of the European Central Bank
It coincided with news of the first collapse by a British sub-prime mortgage company as a result of the market meltdown. Victoria Mortgage Funding, a small lender, has been placed in administration after funding lines dried up.
The London Interbank Offered Rate (Libor), the key measure of how much money costs on the City's open market, increased again yesterday, with the three-month rate, an important yardstick for business borrowing costs, particularly affected. It widened by almost a full basis point (0.01pc) to
6.89625pc
, meaning the three-month Libor is currently the highest it has been above the Bank of England's base rate for 20 years.

Now that our first subprime bank has failed the VIs will be unable to claim that its different here.

Will Brown step in the subsidise loans as his miracle has relied on cheap and easy credit. Without it the miracle will implode. Merv may be told to cut a full 100 BP at the next muppetry session?

Easy tiger... as pointed out no banks have gone bust.

Stay off the gin today :lol::lol:

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