While stock markets around the world suffer steep declines, the overnight dollar Libor surged to 6.88%, an indication that lenders are concerned that money they lend to other financial institutions may never be seen again. "The reason Libor is so elevated is a lack of confidence between counterparties in the financial sector," said Charlie Diebel of Nomura. The situation forced central banks to inject billions into the system.
more at http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3112354/Financial-crisis-Libor-hits-record-level-as-confidence-evaporates.html
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