Europe's Freezing Money Markets

"Money markets are showing rising levels of mistrust between Europe’s banks on concern an almost $1 trillion bailout package won’t prevent a sovereign debt default that might trigger a breakup of the euro." "The cost to hedge against losses on European bank bonds is 63 percent higher than a month ago. Investment-grade corporate debt sales in the region plummeted 88 percent last week [...]" "The three-month London interbank offered rate in dollars, or Libor, climbed to 0.46 percent today, the highest since Aug. 7, from 0.445 percent on May 14 and 0.252 at the end of February [...]" 'Lack of Trust' Pummels Bank Lending in Europe Bloomberg, May 17, 2010

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