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?
market might set libor but the cap on it now is lower due the cuts http://www.economagic.com/em-cgi/PW_MChartOmni.exe/save:economagic!LiborUS1w2w1m2m3m this is easing the pressure a higher libor is creating on the economy