Thursday, July 12, 2012

the art of libor


... a measure of how much banks must pay to borrow money from one another in the short term, is set through a daily poll of the banks.
what a nice deal. banks set their own "measure" which is decided though a poll (of the banks). the circle feeds itself: the banks being polled preempt the future state of things, they report a low number, they assume that if they had to borrow from another bank, their cost of borrowing would be low. but banks are banks! what if one arm of the bank responding to the libor poll manipulates their number based on what another arm of the same bank wants?
The efforts to calculate potential losses are complicated by the fact that Libor is used to determine the cost of thousands of financial products around the globe each day. If Libor was artificially pushed down on a particular day, it would help people involved in some types of contracts and hurt people involved in others.
circulation sweating money commodity from every interstice: a little bit here, a little bit there & multiplied exponentially.
(...) more than a dozen banks that are involved in setting Libor each day, including Bank of America, JPMorgan Chase, Deutsche Bank and Barclays. Last month, Barclays admitted to regulators that it tried to manipulate Libor before and during the financial crisis in 2008, and paid $450 million to settle the charges. 
let's explode banks' vicious redundandy: setting libor is liboring together, which makes fraud institutional. as always, banks do what they do best:
If the banks submitted artificially low Libor rates during the financial crisis in 2008, as Barclays has admitted, it would have led cities and states to receive smaller payments from financial contracts they had entered with their banks, Mr. Shapiro said (...)
so, liboring is inside consent for self-profit & crisis is the new normal --and banks run both.


Anonymous said...

a few minutes ago I got an email with this link of 12 year Canadian old girl explained so clear some issues related to banks, I'm just watched in youtube, es muy bueno ...Saludith from Judith G.

Alfredo Triff said...

Thanks, Judith for the video.

Leonardo Madrigal phi2010 MWF 10:25 - 12:45 said...

As said in the movie "Zeitgeist : Addendum", our monetary institution is one of the most unquestioned faiths there is. The majority of the population takes no interest in the way the economy is created, how it's policed or how it is affecting our society. Money has become the lifeblood of institutions and society itself! We should all take the time to understand how our economy works in order to understand why our lives are the way they are.

“None are more hopelessly enslaved than those who falsely believe they are free.” -Johann Wolfgang von Goethe- 1749-1832

Zeitgeist opens a door to understanding the real, in my opinion, monetary and political system and not what they want us to believe. We say we're being robbed everyday by our government, but if our monetary system is based on a series of loans and bonds created out of thin air, can we really be robbed of money that doesn't really exist and isn't ours to begin with?

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Maria Smith said...

LIBORate yourselves from banking slavery...

Anonymous said...

this is for you triff: the art of libor sounds like the libor of art and i hate both. if it sounds too much like you is pure coincdence.


Alfredo Triff said...

tx, leonardo, maria and erwin.