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Strategies & Market Trends : Waiting for the big Kahuna

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To: Real Man who wrote (81314)10/4/2008 5:35:33 PM
From: Paul Kern  Read Replies (1) of 94695
 
. We'll see.
I expect a big rate cut and a coordinated CB injection of
hundreds of billions in liquidity, but it's hard to tell
if this is gonna work.


Why would banks lend to each other at 1.5% if they wouldn't lend to each other at 2%?

They will lend to each other at at LIBOR.

The FF rate has become meaningless.
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