Inter Bank Lending

This post will look at lending between banks. Interbank Lending has seen some dramatic changes due to the financial colapse. The graph I found gives a very nice timeline with comments.

You can see the steady rise as confidence is growing in the US markets. With only the odd annomaly, 9/11 and in 05/06, it rises from $200,000 million to $500,000 million in 8 years. Then, due to the Lehman bankrupcy credit stopped flowing. This is one of the reason the economy has suffered to much. Low levels of interbank lending has stopped the US coping with it's dept as well as it could have done. Even with the federal reserves payments, it was unable to stop the financial crisis worsening.
Thank you for reading and please feel free to express your own views.