Libor " scandal" very suspicious. 2008/9 huge crisis and Brown should defend pressure to keep rates down and prevent meltdown.I'm with Murdoch on the "scandal" being very suspicious. Of course, I don't think Brown should have done anything about the 2008/9 crisis. It should have been left to the markets. But, as I have pointed out before, this gaming of the LIBOR was an insider game that had extremely limited impact on global rates and near infinitesimal compared to the manipulations that the Fed and Bank of England do on a daily basis. (See here, here and here.)
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Don't know, but suspect Diamond scapegoat used by old establishment who did not like energetic competitor.
Sunday, July 8, 2012
Rupert Murdoch on What is Really Behind the LIBOR "Scandal"
Another weekend of fascinating tweets from Rupert Murdoch:
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This is a case of central banks and their political stooges smarting from being lambasted, for the first time history, thanks to the Austrians, for keeping rates too low too long.
ReplyDeleteSo it is not surprising that they would pounce on a non-story like this to find ANY excuse, however tangential, in blaming the market process for artificially low interest rates.
It's very similar to how drug dealing cops and CIA agents are the first to cry foul against civilian drug dealers, to present themselves as their own solution to a problem they have created for themselves.
In this way, anytime someone says "artificially low interest rates are responsible for the recession", the bureaucrats can have a rebuttal of "Oh yeah? Well look at how PRIVATE banks have artificially lowered interest rates! You can't blame the central planners anymore suckers! Free markets ALSO artificially lower interest rates. The boom bust cycle is therefore endemic to capitalism. Thus central planning and regulation have been rescued once again from oblivion."
Thanks to folks like Wenzel, Murphy, the Mises institute, and many others, ABCT is now on the central banker's hit list, and they're going to do everything they can to absolve themselves of responsibility, such as trying to turn this minor story of interest rate REPORTING, into "the biggest sandal of all time", which is of course going to present the same people who screwed the economy up as "the solution" once again.
Arrogant misguided fools.