Gotta love that crusty American Jim Sinclair! For most of this past year I have been skeptical of LIBOR rates (London InterBank Offered Rate – the rate that banks supposedly lend to one another,) that select British banks SELF-REPORT. Banks that are in trouble pay a higher rate but none want to admit to being in trouble, so the self-reported rates are highly suspect. This is Jim’s open letter to LIBOR. Such dry humour is more British than American.
BTW – below, a basis point is 1 / 100 of a percent.
Nov 10 2008 By: Jim Sinclair Post Edited: November 10, 2008 at 8:25 pm
Filed under: General Editorial
We all want to thank you for your excellent demonstration of duty performed for the financial public welfare and donor central banks.
However you might just be pushing a tad too far. It is clear that you are dropping rates so consistently and significantly that you intend to go below zero before next Wednesday.
Maybe a one day pop up of one basis point would give the entire process some credibility?
Disclaimer: I’m not an investment advisor and these articles are for commentary only. For specific advice you should consult your own investment professional.
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Loved reading thiss thank you