Endless Intervention?

Nevertheless, there have been a few tentative signs that the system may be on the mend. LIBOR (the London Interbank

Offered Rate, a key indicator of the interest rates at which banks lend to each other) has been edging down. The TED spread (the difference between three-month LIBOR weighing nervousness in the interbank market) has narrowed. It appears that lending between banks is beginning to revive.

About the Author

Andrew Stuttaford

Andrew Stuttaford is the editor of National Review's Capital Matters.

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Nevertheless, there have been a few tentative signs that the system may be on the mend. LIBOR (the London Interbank

Offered Rate, a key indicator of the interest rates at which banks lend to each other) has been edging down. The TED spread (the difference between three-month LIBOR weighing nervousness in the interbank market) has narrowed. It appears that lending between banks is beginning to revive.