Michael Dunton provides the latest quote on the LIBOR rate:
The one year LIBOR has broken below 80 basis points to 0.79750
This means there continues to be tremendous fear out there, with many investors taking a small return with a very low LIBOR rate versus going out longer term. We are living in very unusual times.
Wenzel,
ReplyDeleteWe are living in very unusual times.
I think you're right, but still, as an Austrian, you of all people should realize that it was the "usual" that was so unusual, that what's mysterious is that the powers-that-be held it together as long as they did, and that attempting to reason our way through this mess by looking at how things behaved in the past is going to leave us surprised and confused, in that order.
For just one example, imagine a stock market in a world without continual inflation. Now, compare that to the "usual" stock market behavior of the last 100 years.
It's about to get a lot more unusual out there!