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How can their be a liquidity crisis without a rise in bank CD rates?

If Countrywide or any other bank raised their relatively low CD rates, i'm sure they would be flooded with deposits. Countrywide just announced a $11.5 draw on their credit lines. I'm sure if Countrywide upped their CD rates to around the same rate that'


would that not create a very temporary & short term solution with a very drastic & dangerous problem shortly down the road?

If they just arbitrarily raise rates another whole point as you suggest, & hypothetically, it works

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Financial markets and institutions
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Financial markets and institutions

CD rates are easily accessible on numerous websites. For example, Bank-Rate ( http://www.bankrate.com) and Bank CD-Rate Scanner (http://www.bankcd.com) ...

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