US$ LIBOR nearly doubled today. AIG, RBS and HBOS down more than 20% today compared to horrendous falls yesterday. FTSE below 52 week low.
As oil is getting cheaper money is getting much much more expensive and there's only two things that make aeroplanes fly - kerosene and money.
AIG now down 31% - these boys own a third of the worlds fleet of leased airliners. Much much bigger than a couple of the worlds biggest investment banks. The CDS market is about to explode and there is nothing the Fed or the other Central Banks can do about it.
By the end of the year we could have mortgages at 11%. The current situation is fuelled by the Special Liquidity Scheme and its nearly over. The credit crunch in about to go Siberian. There is no way this cannot result in anything other than a severe and prolonged recession. House prices will fall by 45%. 5 million will be in negative equity.
Flying on holiday or on business will be a quaint memory.
If you don't understand the scale of the debt binge the West has been on since the Y2K non-event then you won't comprehend the amount of cold turkey now being plated up. There will be 3 million on the dole by the end of this.
Several banks will go. I wouldn't be suprised to see queues outside of Halifax branches by the end of the month. Bradford & Bingley by the end of the week.
THIS IS A CRISIS.