Sep
20

Banksters

What makes the LIBOR scandal so troubling is that the banks involved deliberately prevented us from understanding how serious the banking and liquidity crisis of ‘08 was. Had we known how high LIBOR rates were, things could have been done to limit the ensuing carnage. By lying about rates, the price mechanism was not allowed to function. Going forward, at a minimum, LIBOR should be based on actual transactions.

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