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Strategies & Market Trends : Can you beat 50% per month? -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (14637)	9/30/2008 8:49:35 AM
From: Smiling Bob	Respond to of 19256

Money markets freeze up Financial stocks poised to recover some losses, but lending strained By John Spence, MarketWatch Last update: 8:40 a.m. EDT Sept. 30, 2008 BOSTON (MarketWatch) -- Financial shares rose in premarket trading Tuesday morning after Monday's epic sell-off, but banks grew even more wary of lending to each other after a Wall Street rescue package was voted down. The Financial Select Sector SPDR (XLF Select Sector SPDR: Financial Select Sector SPDR Fund SOV) rallied in premarket trading following a report Tuesday the bank plans to name a new chief executive. Sovereign shares slipped more than 70% on Monday. Another pressured regional bank, National City Corp. (NCC NCC NCC) , pared some of Monday's 63% decline in premarket. The storm in credit markets has come to a head the past two weeks as some of the nation's largest financial institutions have been acquired at fire-sale prices or simply disappeared. Chart of XLF Overnight lending rates around the globe surged on Tuesday as market skittishness reached a new high after legislators voted against a $700 billion bailout plan designed to provide some relief to financial markets. The seize-up in global overnight lending markets took hold even though the Federal Reserve and other major central banks took unprecedented steps Monday to pour hundreds of billions of dollars in additional liquidity into money markets. See related story. The London interbank offered rate, known as Libor, is the rate banks charge to each other. It surged to 6.875% on Tuesday from 2.56875%. The jump in overnight lending rates dramatically underscored the fear gripping banks around the world. President Bush was scheduled to make a statement on the economic rescue plan on Tuesday morning. End of Story John Spence is a reporter for MarketWatch in Boston.