What the govt. doesn't want you to know about this market crash

What the govt. doesn't want you to know about this market crash

www.bloomberg.com

The overnight Libor rate in U.S. dollars soared 3.33 percentage points to 6.44 percent today, its biggest jump in at least seven years, according to the British Bankers' Association. The one-week rate rose by more than a percentage point, to 3.88 percent from 2.49 percent on Monday, and the one-month rate increased to 2.75 percent from 2.5 percent.

(visit the link for the full news article)

As I watch all the news outlets discuss the financial meltdown, I notice all of them do not mention a very important aspect of this meltdown.

Due to the fact that banks are strapped for cash and don't want to loan other banks right now because they fear the other bank may close shop, the inter-bank lending rate called the LIBOR has just up significantly in the last week or so. This part is mentioned by the news agencies. But what they don't tell you is that many Subprime and Alt-A ARM loans are tied to the LIBOR rate.

If the LIBOR stays high, which it probably will because most banks are on slippery footing, they are going to no doubt set off another wave of foreclosures around the country because people's mortgage payments will significantly increase. Please read this article to further understand the gravity that we are facing. This is truly extremely sobering news.

www.bloomberg.com
(visit the link for the full news article)

[edit on 18-9-2008 by SeekingAlpha]

[edit on 18-9-2008 by SeekingAlpha]

here is another article about the libor rates.'

www.nctimes.com...