Thursday, November 22, 2007
Next Phase of Money Drying up
Banks won't lend to each other because they worried another one of them is broken. We will be going back to a barter economy soon! One place I read recons this "covered bond market" (anyone understand these?) might be shut till the end of the year. "A key source of liquidity for cash-strapped banks – the covered bond market – appeared to be closed off yesterday after trading between banks in the secondary market was officially suspended and the mortgage bank Abbey was forced to abandon a new issue of bonds."