Money Markets

September 29th, 2008 11:44 am | by John Jansen |

The money market trader with whom I regularly converse tells me that the dislocations “are so extreme that the market has ceased to function.”He notes that the announcement of a massive increase in liquidity has failed to dent the problem and that probably 95 percent of trading is overnight basis. There is virtually nothing trading for term.He does suggest that there is some possibility of improvement after the balance sheet day as both the street and clients are busy hoarding cash and pruning balance sheet.

Be Sociable, Share!

Post a Comment