Inter-bank Lending rates on the up

One thing that characterized The Credit Crunch of 08 was that Banks' didn't trust each other. The indicy that expresses this is starting an upward trend. The LIBOR is a good predictor of a looming Credit Crunch 2.

LIBOR creeping upward for three months now

At its peak in 07/08 LIBOR was touching 4%, so we still have a long way to go, but its worth watching as Banks are exposed (speculating) on European debt. They watch nervously for the ECB to do something, before they become insolvent, holding worthless paper.