Credit Rate Settings and Hypocrisy

Much has been stated in the media about Libor, what it is and how terrible the “scandal.” I have written about it and mentioned how the media had blown it up out of all proportions. The pricing has always thrown out the topmost and lowest  interest settings and averaged the rest.

Moreover, central British and American bankers wanted rates to be as low as possible and intentionally overlooked any prejudice in keeping rates low during the 2008-09 financial meltdown.

There are other solutions to rate keeping, as I have stated in the past.The market for credit default swaps, commercial paper, and corporate bonds are an example. (See the Earl J. Weinreb NewsHole® comments.)