October – Another financial crisis

For 5 days, the Fed was pumping US$75b per day into the American financial system to provide the liquidity that was drying up. Last night alone it pumped in US$110b. And this is more than a week of pumping the system.

The interbank lending rate has hot up to 10%, way above the 1.5% -2% that used to be the norm. The reason, the banks were afraid to lend money to other American banks for fear of