Posts: 309
From: Minnesota
Registered: Mar 2012

posted July 07, 2012 09:50 PM            

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http://www.washingtonpost.com/blogs/ezra-klein/wp/2012/07/05/explainer-why-the-libor-scandal-is-a-bigger-deal-than-jpmorgan/
http://www.motherjones.com/kevin-drum/2012/07/libor-scandal-might-destroy-banking-industry

Not sure what forum this should be in but...Is anyone else concerned? I strongly believe the financial crisis of 2008 won't be the last in our lifetime...

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Posts: 3181
From:
Registered: Oct 2011

posted July 07, 2012 10:26 PM            

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This should be in Global Unity 2.

But what exactly is so surprising about a system that is fundamentally flawed? If you take myself and a bunch of my friends and then tell us to tell you what we should pay for a gallon of gas, the answer should be obvious. Nothing.

Why would banks want to pay more interest cost than they have to? Naturally, there will be a downward bias to interest rates. What's so criminal about that? Why target just Barclays? How about HSBC, RBS, UBS, Deutsche, Credit Suisse, Citi and JP Morgan? Aren't they equally guilty?

Then how is it that the public is crying foul when LIBOR is artificially lowered? Mortgage rates and loan rates are kept artificially low. Of course, it also lowers interest on savings and investments as well. But overall, aren't lower interest rates better for the consumer?

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Posts: 34104
From: Pluto/house next to NickiG
Registered: Sep 2010

posted July 07, 2012 10:32 PM            

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Come to GU, Fire Moon
We need new people! xx

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Passion, Lust, Desire. Check out my journal

http://www.mychristianpsychic.com/

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Posts: 309
From: Minnesota
Registered: Mar 2012

posted July 07, 2012 10:42 PM            

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Exactly there's nothing surprising about it at all as the system is fundamentally flawed. We're essentially buying time at this point.

And yes the other banking companies are to blame as well.

And the problem with it in very simplistic wording is that just like with the housing bubble here, if you sell people loans at artificially low rates, eventually consumers are not going to be able to make their payments and banks won't be getting their returns, and then bailouts become necessary that effect the entire international economy. Middle class families lose their houses in the U.S., but the effects are far worse in other parts of the world that have become entangled in this web, and I don't see things getting any better honestly. And artificially printing money while inflation and debt is still rising only buys time, it doesn't get to the root of the problem. It's not like one banking company did this all on their own, but I think people should know what's going on and there should be a little transparency if nothing else, instead of banks just going on with business as usual and hot shot economists constructing all sorts of PR schemes to make it seem like everything is just fine... Which the public is conveniently so willing to buy into....

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Posts: 309
From: Minnesota
Registered: Mar 2012

posted July 07, 2012 10:45 PM            

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quote:

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Originally posted by Ami Anne:
Come to GU, Fire Moon
We need new people! xx

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Thanks Ami I will check it out!!

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