Overnight Libor for Dollar Falls to Lowest Level in Four Yea

[Ekiqa]

http://www.bloomberg.com/apps/news?pid= ... refer=home

Overnight Libor for Dollar Falls to Lowest Level in Four Years

By Gavin Finch

Oct. 17 (Bloomberg) -- The London interbank offered rate, or Libor, that banks charge each other for overnight loans in dollars fell to the lowest level in four years, according to the British Bankers' Association.

It declined 27 basis points, or 0.27 percentage point, to 1.67 percent today, the lowest level since September 2004, BBA data showed. The three-month rate for dollars dropped 8 basis points to 4.42 percent.

Would this be due primarily to the huge cash injections, or to the governments gaining control?

[SirNitram]

This is very good. The three month still needs to come down alot further, but it's a signal of the lending thaw. The economy will still be trash for a while even if the three month drops back down to where it should be, but it will not simply shut down.