THE MARKETS ON THE FED PLAN: NOT SO MUCH

The efforts by the Federal Reserve and other central banks to fix the BigShitPile (© Atrios) doesn't seem to have impressed the markets.

Central Banks Fail to Thaw Money Markets as Rates Stay High
By Gavin Finch
Dec. 13 (Bloomberg) -- Global central banks are failing to thaw the freeze in money markets that threatens to derail economic growth as interest rates charged by banks for loans in the euro area stayed at a seven-year high.
The three-month borrowing cost stayed at 4.95 percent, its highest level since December 2000, according to prices from the European Banking Federation today. That's 95 basis points more than the European Central Bank's benchmark interest rate.

Corporate Bond Risk Rises on Concern Over Fed's Credit Plan
By Michael Shanahan and Hamish Risk
Dec. 13 (Bloomberg) -- The risk of European companies defaulting on their debt rose on concern the Federal Reserve's coordinated response to the global credit crisis won't be enough to prevent an economic slowdown damaging profits.

Treasuries Rise on Speculation Fed Cash Boost Won't Be Enough
By Kim-Mai Cutler and Wes Goodman
Dec. 13 (Bloomberg) -- Treasury notes rose on speculation a Federal Reserve-led plan to revive credit markets crippled by defaulted subprime loans will do little to stem an economic slowdown.

European Government Bonds Gain as Investors Shun Riskier Assets
By Lukanyo Mnyanda
Dec. 13 (Bloomberg) -- European government bonds gained as falling equity markets signaled central banks' attempts to revive credit markets will do little to stem a global economic slowdown.