The Worst May Be Over…

Markets worldwide are reacting favorably to (from Reuters):

Interbank lending, stimulus provide hope in crisis

Monday, October 20, 2008
By Daniel Trotta

NEW YORK (Reuters) – Interbank lending emerged from deep freeze and Fed chairman Ben Bernanke gave his blessing to a second U.S. government stimulus package on Monday, providing hope the world’s financial crisis may be easing.

The three-month Libor rate fell more than one-third of a percentage point, its biggest one-day drop in nine months in one sign that banks may have the confidence to lend to each other again, crucial to reactivating the world economy.

The chairman of the U.S. Federal Reserve told Congress on Monday that another wave of government spending may be needed as the economy limps through what could be an extended period of subpar growth.

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