BUSINESS
12/06/2008 05:12 am ET Updated May 25, 2011

Banks Still Hoarding Cash

Although LIBOR Plunged For 17 Consecutive Days it is not a sign of a huge increase in willingness to lend. Inquiring minds note that Libor's Biggest Drop Fails to Spur Loans.

The London interbank offered rate, or Libor, for three- month loans fell to 2.51 percent today, from 4.82 percent on Oct. 10. The rate is still 151 basis points more than the Federal Reserve's target interest rate for overnight bank loans, compared with an average of 22 basis points in the five years before the global credit crisis began in August 2007.

Read more on Mish's Global Economic Trend Analysis