Euro Libor Stays at 7-Year High as Credit Squeeze Persists

Quote from Daal:

LOL. they lower rates 100 basis points in a huge credit crunch that is only getting worse(and the threat of a credit contraction and asset deflation not seen since the great depression)and you guys talk about hyperinflation and helicopters. you just cant make this stuff up
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Daal there is no credit crunch. If you asked to pay a little more interest it doesn't mean it's a credit crunch

And credit contraction is good when credit is 50 times more than M3 and when inflation is 7.2% yoy and 3.2 mom officially
 
Daal, first of all, I never claimed not to be nuts and any accusations that I am perfectly sane will be taken as an affront.

Secondly, what I argued is that central banks have lost control of rates. The libor is determined by the market and as you yourself mentioned the central bank cut was only "symbolic" and had just a temporary effect. Logically therefore how would the credit markets be any different due to the action of such an ineffectual player?
 
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