Industry NewsMarkets & Economy

Banks must resume lending

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

The credit markets this week continued to thaw. All-important LIBOR fell to 2.38 percent for 90-day money; and one-year is down to 2.84 percent -- ARMs resetting next month will settle just a hair above 5 percent. 30-year mortgage rates with no fees made it to 6 percent, but for the umpteenth time this year stopped at that barrier. Central banks and treasuries around the world this week increased already massive intervention: The Bank of England cut 1.5 percent in one whack yesterday, joined by the ECB's 0.5 percent cut in the Eurozone. The Fed's overnight rate is 1 percent, but actual domestic interbank trading has been 0.23 percent. They will succeed in stabilizing the patient. The economic data are awful. You knew that -- no point in reciting. However, the pattern unfolding is important. The last two recessions, '01-'02 and '91-'92, were miniature affairs discovered after conclusion, typical of all post-WWII recessions except the two big ones, '73-'74 and '79-'82. Th...