Lies, Damn Lies and LIBOR

I don't understand why this stuff isn't front page news of mainstream (cnn, fox news, etc.) newspapers. You'd figure with all the lingering resentment this would be a huge field day. Currently relegated to business news journals.

Re: Lies, Damn Lies and LIBOR

#5

Post by debacle » Tue, Jul 10, 2012, 7:56 PM UTC

cluda01 wrote: post #4

I don't understand why this stuff isn't front page news of mainstream (cnn, fox news, etc.) newspapers. You'd figure with all the lingering resentment this would be a huge field day. Currently relegated to business news journals.

Because people don't understand it or don't care, and that doesn't garner eyeballs like the story about Tom and Katie's split.

Re: Lies, Damn Lies and LIBOR

#6

Post by debacle » Tue, Jul 10, 2012, 7:56 PM UTC

johnnyg wrote: post #2

If you want the same story, just played out in commodities markets, check out http://www.tfmetalsreport.com .

A little context? I checked out the link and didn't really see anything that caught my eye. Read a few blog posts, still didn't get it.

Re: Lies, Damn Lies and LIBOR

#7

Post by danboarder » Tue, Jul 10, 2012, 7:59 PM UTC

cluda01 wrote: post #4

I don't understand why this stuff isn't front page news of mainstream (cnn, fox news, etc.) newspapers. You'd figure with all the lingering resentment this would be a huge field day. Currently relegated to business news journals.

One reason is that the London Interbank Offered Rates (LIBOR) are just not as relevant as they used to be:

"...the scandal has shed light on an inconvenient truth about these interbank rates which are used to determine the price of so many hundreds of trillions of dollars worth of global financial contracts.

That inconvenient truth is that even when London Interbank Offered Rates are not "fixed", they may still not bear very much relation to reality - because banks are not actually offering much unsecured money to each other at all."

See: Inconvenient truths about Libor http://www.bbc.co.uk/news/business-your-money-18701623

Re: Lies, Damn Lies and LIBOR

#8

Post by danielweber » Tue, Jul 10, 2012, 7:59 PM UTC

cluda01 wrote: post #4

I don't understand why this stuff isn't front page news of mainstream (cnn, fox news, etc.) newspapers. You'd figure with all the lingering resentment this would be a huge field day. Currently relegated to business news journals.

I heard about "LIBOR fixing" but this was the most detail I found on it so far. (To be fair I've been busy and haven't gone proactively digging for information on it.)

Re: Lies, Damn Lies and LIBOR

#9

Post by Tloewald » Tue, Jul 10, 2012, 8:04 PM UTC

danboarder wrote: post #7

cluda01 wrote: post #4

I don't understand why this stuff isn't front page news of mainstream (cnn, fox news, etc.) newspapers. You'd figure with all the lingering resentment this would be a huge field day. Currently relegated to business news journals.

One reason is that the London Interbank Offered Rates (LIBOR) are just not as relevant as they used to be: "...the scandal has shed light on an inconvenient truth about these interbank rates which are used to determine the price of so many hundreds of trillions of dollars worth of global financial contracts. That inconvenient truth is that even when London Interbank Offered Rates are not "fixed", they may still not b…

Back in 2008 my ARM's rate was tied to LIBOR. I doubt I Was alone.

Re: Lies, Damn Lies and LIBOR

#10

Post by barret907k » Tue, Jul 10, 2012, 8:06 PM UTC

It will be interesting to see when the banks have the same fallout we had in 1929. How much wealth actually exists?

This article makes a good point about how we can't know. Too many shady things are happening and no regulation to figure it out.