by Calculated Risk on 10/02/2008 02:03:00 PM
Thursday, October 02, 2008
Credit Stress
"The credit window is closed."The TED spread is at a record 3.62.
Jim Press, president of Chrysler LLC
And from Bloomberg: Libor Soars, Commercial Paper Slumps as Credit Freeze Deepens
The Libor- OIS spread, the difference between the three-month dollar rate and the overnight indexed swap rate, widened to a record 260 basis points today. It was 197 basis points a week ago and 79 basis points a month ago.The NY Times quoted Chairman Bernanke as saying on Friday, Sept 19th:
...
The market for commercial paper plummeted $94.9 billion to $1.6 trillion for the week ended Oct. 1 as banks and insurers were unable to find buyers for the short-term debt ...
"If we don’t do this, we may not have an economy on Monday."Well, we still have an economy, but it is clearly in tatters ...