Is LIBOR a scam?

[phirang]

Can someone elucidate on the possibility that LIBOR may perhaps be a bit artificially high?

[Christoph von Gamm]

Re: Is LIBOR a scam?

It is rather a bit artificially too low.

It is based upon the self-declaration of banks on their paid and to-be-paid interests. Many of them do NOT declare that they have to pay that much. I expect LIBOR rather 100 basis points higher for real than it is publicised.

Cheers from the Zürichsee

Christoph

[santafe2]

Re: Is LIBOR a scam?

Can someone elucidate on the possibility that LIBOR may perhaps be a bit artificially high?

LIBOR is reflecting fear and a lack of trust. In the very small likelihood the that the House does not pass the bailout bill in the next few hours, LIBOR will no longer indicate fear and a lack of trust, it will indicate panic.