The term “derivative” has become a dirty, if not evil word. So much of what ails our global financial system has been laid-at-the-feet of this misunderstood, mischaracterized term – derivatives. The purpose of this paper is to outline the origin, growth and ultimately the corruption of the derivatives market – and explain how something originally designed to provide economic utility has morphed into a tool of abusive, manipulative economic tyranny. Words: 3355
Read More »The "LIE-BOR" $candal Explained
The LIBOR scandal is, in effect, "the world's biggest banks stealing money that would otherwise have gone toward textbooks and medicine and housing for ordinary Americans, and turning the cash into sports cars and bonuses for the already rich. It's the equivalent of robbing a charity or a church fund to pay for lap dances."
Read More »The “LIE-BOR” $candal Explained
The LIBOR scandal is, in effect, "the world's biggest banks stealing money that would otherwise have gone toward textbooks and medicine and housing for ordinary Americans, and turning the cash into sports cars and bonuses for the already rich. It's the equivalent of robbing a charity or a church fund to pay for lap dances."
Read More »LI(e)BOR: All You Need to Know – and Why You Should Care (+2K Views)
The very nature of the question used to solicit rates from the contributing banks to establish the LIBOR (London Interbank Offered Rate), tells you all you need to know. The banks are asked, in effect, “At what rate could you borrow funds, were you to do so by asking for and then accepting inter-bank offers in a reasonable market size just prior to 11 am?” The bank is supposed to submit a rate where they think they could borrow, not where they actually borrowed, or where they would lend to other contributors...and, as such, LIBOR has always had an element of “gamesmanship” if not outright lying. [Here's what you should know about what LIBOR is, how it is established and why you should really care.] Words: 1100
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