Two postings from this blog proving the present LIBOR kerfuffle is all froth:
Libor dead? Central Banks Rule? Chaos spreads!
The above posting concluded with this paragraph which makes a complete mockery of all the fake outrage in Parliament at the moment:
"There's no real term funding markets except for central banks," said Meyrick Chapman, a fixed-income strategist in London at UBS AG. "The Libor is meaningless. It's for unsecured lending and there is no unsecured lending as far as I can see."
Pillars of western capitalism tremble!This latter concluded with the following perfectly clear statement:
....far more worrying IMHO, implies the deliberate manipulation of Libor, which forms the basis for financial adjustments in many "real" (ie non intra-financial institutions) commercial dealings. Read here When I used it for large oil company contracts, I was assured by my financial and accounting specialists, that LIBOR was the Gold Standard of independence, is this still the case?
If Libor has been fiddled, where has trust now found a home?