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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: zamboz who wrote (78291)	4/24/2008 11:03:50 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Fed Auction Futility globaleconomicanalysis.blogspot.com LIBOR, the interest rates banks charge each other for short term lending has been rising lately. Curve Watchers Anonymous notes that 1-month LIBOR was 2.61% a month ago while today it is 2.90%. The Fed is attempting to combat this with more pawn shop swap operations. It's not working. One more swap and the Fed's balance sheet will be more than 50% garbage. At the current rate the Fed will be swapped out within 3-4 more months. Swap till you flop? Is ZIRP next? Printing? Whatever it is, it won't matter. Banks and brokers are becoming increasingly zombified with each passing day. Mish