Click on the chart to expand it and see who the banks are that report to the British banking Assc. that sets LIBOR.
"This also means the market’s new favorite idea of having G7 countries guarantee all inter-bank loans will do nothing. If enacted, banks would still be missing an incentive to use the inter-bank loan market because they can get all the funding (loans) they need from their neighborhood central bank and at a much lower rate."
AND, PLEASE, read the comments associated with the above link for more understanding/education.
"It is accepted that if the current plan to calm the markets through state-backed recapitalisation of banks fails, then there will be no alternative but for governments to take them over – lock, stock and barrel."
"The US will draw up its own plan to pour public money into Wall Street banks after studying the emergency proposals outlined by Alistair Darling to save UK banks from imminent collapse." ; so much -despite all the speeches- for co-ordinated action between all the central banks !!
Note what he says at the end about the need by the U.S. for foreign financing in upcoming years, especially by China; then think about the arms deal to Taiwan.
In the meantime:
For insensitivity, Wachovia refuses to be outdone
"Be that as it may, AIG’s Norton said next week’s Ritz-Carlton retreat would proceed as planned. He said the event would introduce new insurance products to salespeople who specialize in wealthy clients."
Now don’t that make you feel better?