On yesterday's podcast, we talked about LIBOR, the London interbank offered rate. A measure of the interest banks charge each other for loans, LIBOR has lately been falling.
Yet when we asked money trader Will Aston-Reese about it for the podcast yesterday, he told us that despite lowered interest rate, he's still seeing precious little lending between banks. Which prompted Gordon Wilson to send us what looks at first like an entry for the Planet Money Glossary:
LIBOR = The rate at which banks will still not lend each other money...
categories: Fun With Economics
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