LIBORATING THE MONEY:

Libor Loosens Up: Why You Should Care (Katy Marquardt, 1/15/08, US News)

Libor—the London interbank rate—is on the decline, thanks to the government's rescue package. Translation: Rates for borrowing between banks are falling. Why should you care? Because many consumer loans are tied to it, including more than half of U.S. adjustable rate home loans. Many small-business, student, and auto loans and home-equity lines of credit also take their cues from Libor. The higher the rate, the tougher consumers have it.

Libor rates for three-month dollar loans are currently 4.55 percent, down from 4.64 percent on Monday. Some context: After the House of Representatives rejected the bailout bill at the end of September, Libor rates shot up to 6.88 percent, and a month ago, rates were less than 3 percent, according to the AP.