With the London Interbank Offered Rate (Libor) at record levels, thus hurting short-term borrowing, as well as blowing up many jumbo mortgages linked to the floating rate that have begun to adjust, it's useful to remind yourself how exactly Libor works. Click image to enlarge.Thursday, October 9, 2008
LIBOR: The Driver of Jumbo Rates.
With the London Interbank Offered Rate (Libor) at record levels, thus hurting short-term borrowing, as well as blowing up many jumbo mortgages linked to the floating rate that have begun to adjust, it's useful to remind yourself how exactly Libor works. Click image to enlarge.
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After the week global banking just went through, no scenario is unthinkable. Banks are in trouble throughout Europe and Iceland's all went broke. Britain is buying shares from its biggest banks for hundreds of billions of dollars, essentially part-nationalizing the sector. And Thursday the American treasury secretary hinted that the U.S. might follow in the U.K.'s footsteps. If banks in the U.S., Britain and Europe are nationalized what does that mean for the layman?
What does it really mean... ???
What does nationalize mean to the retired senior? I am a member of Myinvestorsplace.com and I, and others like me in similar circumstances are looking for help. Any suggestions?
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