LIBOR Climbs Aboard The Titanic
Probably because it is dawning on investors that both players and regulators are incompetent buffoons, unable to grapple with the simple maxim that Garbage In=Garbage Out, and that the inbuilt destructiveness of securitising mortgages applies equally to securitising credit card debts and student loan debts, and a whole load of other debts.
The US Treasury has completely abandoned its plan to buy up Troubled Assets, probably because it now realises that there are so many that even the US Treasury can’t afford it, and is now hurling the money at banks it likes the look of, and insurance companies it can’t allow to fail.
None of this inspires confidence in the banking system in general, and the US in particular, so dollar LIBOR starts to climb once more. And this time around it’s difficult to see what anyone can do about it; the Mother of All Bail-Outs is self-evidently the Mother of All Failures, and the band plays on as we head towards the iceberg…
– Chenier
Posted: 15th, November 2008 | In: Money Comments (4) | TrackBack | Permalink
