201 Street

Moody’s now reports that commercial real estate prices are declining in line with the tightening credit squeeze. All of these reports are based on how things were before the cash injection into the banking system by the major central banks (see BBC News). This cash injection resulted in LIBOR rates decreasing slightly. The injection of cash should also allow the banks to stop relying on each other for money and allow them to use government money. The BBC News site especially mentions Northern Rock which has had a tough time recently because most of the money it lends out is borrowed from other banks, rather than being supplied by its own savers.