NEW YORK (CNNMoney.com) -- Lending rates continued to fall Friday, a sign that the government's numerous plans to ease the credit crisis are taking effect.
The overnight Libor rate fell for the fifth-straight day to 0.41% from 0.73% on Tuesday, according to the British Bankers' Association. It was overnight Libor's lowest level since the BBA began calculating the rate in 1997. The 3-month Libor rate also dropped to 3.03% from 3.19% on Thursday.
Lending rates have been trending downward for the past several weeks. Just a month ago, 3-month Libor was over 4%, and the overnight rate was at an all-time high of 6.88%. Lower rates are a major boost for the strangled credit market, as more than $350 trillion in assets are tied to Libor.
"The credit crisis is tentatively solved - money is available to those who need it," said Pierre Ellis, senior economist at Decision Economics. "The next step is to get banks to trust each other, but that won't happen until we have a period of sustained stability."
The federal government has instituted several programs - costing trillions of dollars - aimed at easing funding concerns for banks and encouraging lending between financial institutions. These include measures such as lowering interest rates, injecting capital into banks and providing insurance on all non-interest bearing accounts.
One such program, the Fed's Commercial Paper Funding Facility, has provided critical short-term financing to businesses in desperate need of cash. The Fed said Thursday it has bought $143.9 billion in commercial paper since the program began Monday.
The Fed also reported Thursday that commercial banks borrowed a record $111.9 billion a day, on average, from its emergency lending window over the past week. Banks borrowing from the so-called discount window are able to borrow from the government for an interest rate of just 1.25%.
Many of these programs, including cutting $250 billion in checks to banks, have only recently come online, and analysts say it will still take time for the new initiatives to reduce the lending stranglehold that continues to grip banks.
"The federal government is stomping on the gas, and eventually the car is going to move," said Matt McCormick, portfolio manager at Bahl & Gaynor Investment Counsel. "We're beginning to see some cracks in Libor, but we're seeing a trickle, not a waterfall
A U.S. Commerce Department report released Friday said that personal spending declined at a faster than expected rate in September, falling to its lowest level in more than four years. Personal income grew more than expected, but September's increase was less than August's.
أخي الجبل بعد تعليقي على موضوعك وجدت هذا الموضوع الذي يثبث صحة كلامنا والجميل في الموضوع الارقام القوية مثل ال libor اليوم نزل الى 41.% من 71.% لليوم الخامس على التوالي ومن يصدق قبل شهر كان 6.88%.
وكما هو مذكور في الخبر عمليات أقتراض البنوك التجارية وصلت الى 119.9 مليار في خلال أسبوع فقط
أرتفاع الأسواق الأمريكية اليوم وأمس وخصوصا بعد قراءة الناتج المحلي السلبية وأيضا عدم خسارة الاسواق أرتفاع ال11% قبل كم يوم لها بعد أيجابي كبير قد يكون بداية الأستقرار
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