As many people warned (including me - here and here), the bailout and the "loaning" of trillions of dollars through the Fed's Open Market Program will not free up liquidity because the banks are hoarding cash.
Bloomberg confirmed this today in an article entitled "Money-Market Rates Climb as Banks Hoard Cash, Crisis Deepens", which starts with these words:
Money-market rates climbed worldwide as banks hoarded cash on speculation the seizure in credit markets is deepening and may prompt more financial institutions to collapse.
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