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they have been shut out for last 2 weeks, the short term ie upto 6 mnths has not closed, as it did in 2008……This is why they had to “save” the SM/banks over the weekend and hope the long term debt mkts recover…if not the short term mkts will freeze and then it’s back to 2008 !!!!!!!
Classic squeeze is hitting the TBTF banks….Under Nirp they can’t earn much if any money on deposit taking, no-one of sound mind will buy their crap derivatives and unless you have GS’s network, insider trading is not paying much. Plus they are still paying staff as if it was 2006 !!!!
So lenders are rightly demanding higher rates on Long Term Bonds/Notes, to lend to a crap business model, just as the Banks ability to pay anything is falling apart……. …..they have at last screwed themselves……..it couldn’t happen to a nicer bunch.