by Calculated Risk on 9/30/2008 08:31:00 AM

"The money markets have completely broken down, with no trading taking place at all. There is no market any more."
Christoph Rieger, Dresdner Kleinwort in Frankfurt, Sept 30, 2008

From Bloomberg: Libor Surges Most on Record After U.S. Congress Rejects Bailout

The London interbank offered rate, or Libor, that banks charge each other for such loans climbed 431 basis points to an all-time high of 6.88 percent today, the British Bankers' Association said. The euro interbank offered rate, or Euribor, for one-month loans climbed to record 5.05 percent, the European Banking Federation said. The Libor-OIS spread, a gauge of the scarcity of cash, advanced to a record.

Also President Bush spoke at 8:45AM ET.

Short excerpt from Bush:

"This is not the end of the legislation process. ... This is an urgent situation. Consequences will grow worse if we don't act. If we continue on this course, the economic damage will be painful and lasting. ... Congress must act. ... We will deliver."