Posted by hornsant on 19th of May 2009 at 10:17 am
Libor has come down, the banks have the liquidity but still they
don't make interbank loans, the reason could be that their
colateral is to poor and the higher their stocks go the riskier the
colateral gets, no matter how high they take this rally it won't
get things going, but it is not adviceable to short it cause you
are betting against the liquidity of the banks...no business
there.
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rally
Posted by hornsant on 19th of May 2009 at 10:17 am
Libor has come down, the banks have the liquidity but still they don't make interbank loans, the reason could be that their colateral is to poor and the higher their stocks go the riskier the colateral gets, no matter how high they take this rally it won't get things going, but it is not adviceable to short it cause you are betting against the liquidity of the banks...no business there.