explanation of LIBOR scandal (video)

Discussion in 'Politics' started by hilbert, Jul 12, 2012.

  1. hilbert
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    hilbert Member

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    Here is a video explaining the LIBOR scandal

    [ame=http://www.youtube.com/watch?v=fcyX6Hlqldk&feature=player_embedded]Kucinich Explains "LIBOR" - YouTube[/ame]
     
  2. g5000
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    g5000 Diamond Member

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    I've been thinking about posting about this and explaining it in more detail than Kucinich does. Maybe tonight or tomorrow.

    It's a huge crime, and the torches and pitchforks should be out. Everyone should be as outraged as can be, and the whole guilty lot in prison for life.
     
  3. g5000
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    g5000 Diamond Member

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    Let's say the price of rice is determined by 18 major distributors of rice. Each morning, the 18 distributors are asked how much they would have to pay for a pound of rice if they bought a pound of rice that day.

    They are not asked to show they actually bought the rice and provide a receipt. They are just asked a hypothetical question.


    And let's say that each of those 18 distributors are also allowed to bet on which way the price of rice is going to go tomorrow.

    This is a screamingly obvious conflict of interest.

    The opportunity for fraud, though, is mitigated by the fact that a single distributor cannot affect the market average price much since there are 18 prices averaged, and the highest and lowest quoted prices are thrown out.

    However, if a large enough number of the 18 distributors coordinated with each other, they could certainly affect the price of rice, which means they could make the price of rice move in the direction which they bet it would move.


    Now you may be thinking, "So what? The bets are a zero sum game."

    Well, first, it is a rigged game since one side is clearly cheating. This alone is inexcusable. And chances are good that your retirement money is on the cheated side of that bet.

    But it also ignores the fact that the entire planet pays for rice based on what these 18 distributors determine the price to be. So when these criminals artificially drive the price up, they have vanquished the "invisible hand" and are costing consumers billions of dollars a day more.




    This is what the LIBOR scammers have done. And there is no way it was just Barclays. For the reasons shown above, it is not possible it was only Barclays. This required a coordinated effort between several banks. So this scandal is far from over.

    And these assholes have affected everything which requires the borrowing of money. Your car loan, your home loan, your credit card balance, corporate bond rates, interest rate swaps, the commercial paper rates, and on and on and on.

    This is a crime of unprecedented magnitude. Every free marketeer should be screaming for these guys' blood.
     
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    Last edited: Jul 13, 2012
  4. occupied
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    occupied Gold Member

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    They would if they valued honesty and integrity above finding a new angle to make tons of cash without investing it in honest work and sustainable production. They have killed the golden goose and stripped it to the bones, all they have left is the marrow and this is what it looks like.
     
  5. g5000
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    g5000 Diamond Member

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    The government does not punish these kind of evildoers. They did not punish Daniel Sparks, Tom Montag, Brian H. Stoker, Fabrice Tourre, John Paulson, or Angelo Mozillo.

    When crime goes unpunished, it encourages more crime. And now these bastards have gotten so bold they are actually genetically damaging our global financial system to gain a few bucks.
     
  6. Truthmatters
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    Truthmatters BANNED

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    see why we need regulations and inforcemnet oif thoise regulations.

    anyone who wants deregultion of of any industry are plain crazy
     
  7. g5000
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    g5000 Diamond Member

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    Whenever a Libertarian says "Underwriters Laboratories", just say, "LIBOR".

    :tongue::tongue::tongue:
     

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