When Will Relief Come?

Yesterday we learned how regulators plan to keep money flowing around the globe. Today, MarketWatch.com reminds us that it will take months for the relief to come. After all, everybody is a bit skittish. If you're wondering why, think of all the layoffs, CEO exits, and write-downs in the news recently. Not a way to spread holiday cheer.

The MarketWatch article is a nice summary of all that's going on. The jist of it is:

"Banks are running scared, reluctant to lend money to each other and to consumers and businesses."

This has shown up in the spread of LIBOR over the Fed Funds Rate for several months. There's a lot of fear among banks -- they don't feel comfortable lending to each other. To find out more about the situation and the proposed fix, see MarketWatch.com.