If so, Libor rates is certain to shoots up into the stratosphere which would decapitated the global financial system and cause a major global stock market crash more severe that the 2008 stock market crash.
The world central banks would likely intervene to supply liquidity but because they were so heavily criticized during the 2008-2209 financial crisis, they may be a little timid at first, which would be extremely bad for the global markets because once the system has collapsed it will be very difficult to support.
At the heart of the problem is a banking crisis, over-indebted and over-leveraged banks, problems they had in 2008 but was never solved because the world central banks, being run by Keynesian economists, never understood the problem, hence had prescribed the wrong medicine. Instead of solving the problem, they exacerbate the situation and had simply delayed the inevitable reckoning, the eventual bursting of the debt bubble.
Credit crunch will come, it is just a matter of when, In what form and how agressive the world Central Bankers would handle it this time around will tell us the trajectory of the incoming financial crisis that we can take advantage of and profit from. My guess is that the Fed would initially open up liquidity SWAP lines with major central banks in order to ease the credit crunch, but should that is deemed insufficient they will intervene by directly buying up the collapsing stocks. Governments in their misguided attempt would likely come in with "fiscal stimulus" but instead of helping the situation it that would greatly exacerbate the crisis.
A timid response would be bad for the markets in the short-run but good in the long-run. The stock markets would crash and gold and silver prices should explodes further to the upside as "smart" global investors stampede into safe haven assets. Dumb money will pile into government bond of course, falsely thinking that bond is a safe haven.
I will be watching out for a major flash-crash that can easily sends dow 1000's of point down.
An aggressive response should slow down the collapse but could accelerate fiat currency collapse, causing the already accelerating gold price to go up even faster. Many investors will be running into government bonds, but although they will not lose their "fiat paper money", currency collapse would render their dollars or Euros worthless.
