Three-month Libor, the rate that bank's lend to each other dropped for the sixth consecutive day, going from 4.42% to 4.06%. Meanwhile overnight, South Korea backed $100 billion in bank debt and announced a $30 billion lending facility for the nation's banks. This is an effort to stablize the Won, which has been pummeled over the last few weeks. Additionally, Dutch bank ING, the biggest bank in the Netherlands, got a $13.4 billion capital infusion from Dutch governement.
Be very aware today and really for the rest of the year, that hedge fund liquidations will dominate flows for a considerable amount of time as funds are either liquidating to meet investor redemptions, or worse, liquidating as they close up shop. Be lucky.
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