Excerpt from: Spot Forex
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| September 17, 2008 | | Spread bets and CFDs on interest rates | Things are getting ugly in terms of banks lending to banks right now. The Libor rate is on the rise, due to a lack of liquidity. Indeed, reports Bloomberg, worries of bank failures are affecting liquidity around the world:
``Everybody is worrying about which bank is going to go
bankrupt next,'' said Ronald Tharun, a money-market trader in
Stuttgart at Landesbank Baden-Wuerttemberg, Germany's biggest
state-owned bank. ``There's almost nothing being traded in the
money markets. Nobody trusts anyone else.''
This is not really much of a surprise, since the failure of Lehman Brothers, Merrill Lynch and the bailout of AIG have investors and lenders alike jittery.
| Topic Tags: bank failures, CFDs, interest rates, Libor, Libor rate, liquidity, spread bets, spread bets interest rates | |
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