SOURCE: - The U.S. Prime Rate, LIBOR and Much More

September 24, 2009 03:50 ET Adds New Finance Blogs

PHILADELPHIA, PA--(Marketwire - September 24, 2009) - The financial website at has added a new prepaid credit cards blog to its lineup of finance-related weblogs, along with a new blog about the London Interbank Offered rate, or LIBOR. The site already has blogs about the U.S. Prime Rate, business credit cards, car insurance, 0% credit cards and the credit card industry in general.

LIBOR, produced by the British Bankers' Association (BBA) and Thomson Reuters every UK business day, is the interest rate associated with large loans between banks in the London wholesale money market. It's also a critical index used the world over in the pricing of countless loans and other financial products, including many adjustable-rate mortgages in the United States.

The new LIBOR blog at also features a daily check on the 3-month TED spread, a significant and meaningful indicator of the health of interbank lending.

"Credit is flowing much better than it was at this point last year when interbank lending came to a virtual standstill, but we're not out of the woods yet," said content manager Steve Brown. "The TED spread looks great, but banks are still getting lots of help from the federal government. Once the economy gets stronger and the pace of inflation rises, the Federal Reserve will start winding down all the creative liquidity programs it implemented to keep the nations most important banks afloat and lending to businesses and consumers. Once they're pulled from the government teat, banks may cutback on lending again.

"The risk anti-bubble is still with us. The yield on the 3-month Treasury bill recently sank to 0.08%, which is a very clear indication that lots of Wall Street money is still moving to the safety of government debt," added Brown.

Prepaid credit and debit cards are more popular than ever, thanks to key benefits like no interest charges, no debt and the capacity to use them as financial teaching tools. Moreover, since the credit crisis which began during the summer of 2007 and peaked in the fall of 2008, American banks have been hoarding cash and scaling back on lending. Compared to the first quarter of 2007, credit card application approvals are now a fraction of what they were, leaving many consumers scrambling for alternatives to traditional credit cards.


The website at is the Internet's premier information space dedicated to interest rates and personal finance.