Wednesday, September 17, 2008

Credit Crunch

How many how many loans and credit card interest rates are based on LIBOR + points? Why isn't this getting more attention?

The London interbank offered rate, or Libor, that financial institutions charge each other for loans soared 3.33 percentage points to 6.44 percent today, according to the British Bankers' Association. The increase was the biggest in its history. The rate was as low as 2.07 percent in June.

This has got to be very bad news--for everyone.

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