Global Credit Warming?

With all the extra dollars being pumped into the atmosphere, it looks like enough heat is being trapped to bring about the end of the credit ice age. All it took was a large number of governments to guarantee a bunch of loans and viola!
Would you loan out your money if you knew there was no chance of it going bad? Of course, especially if the rate was good enough, which most are historically right now.

From Reuters

Underpinning the new-found relief, lending rates between banks -- at the center of fears about the industry freezing up -- fell significantly. This suggested authorities' efforts to revive the financial system with cash injections were finally starting to work.

With banks starting to lend to each other, and them finding the water isn't as cold as they thought, large corporate lending will quickly follow.

Energy stocks were on fire today, but I would guess those gains will be parred before the end of the week as investors realize the plunge in the energy commodities will hinder the bottom line of a lot of the companies that saw their share prices rise today.

The president of OPEC, Chakib Khelil, said on Monday that non-OPEC producers like Russia, Norway and Mexico should contribute production cuts to help stabilize sagging prices.

This has happened before, I'm sure there will be a decision to cut production, but I doubt real production will go down that much. However, look for the commodities markets to look for any excuse to drive the price of oil and gas back up as the hedge funds jump back in smelling a quick buck.