LIBOR a joke – Nov. 11, 2008

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. 

Gerold

Nov 10 2008     By: Jim Sinclair      Post Edited: November 10, 2008 at 8:25 pm

Filed under: General Editorial

Dear Lie-bor,

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?

Sincerely,
Jim
.

Disclaimer: I’m not an investment advisor and these articles are for commentary only. For specific advice you should consult your own investment professional.

Your comments are WELCOME! Lengthy comments may time-out before you’re finished so consider doing them in a word doc first then copy and paste to “Leave a Reply” below.

About gerold

I have a bit of financial experience having invested in stocks in the 1960s & 70s, commodities in the 80s & commercial real estate in the 90s (I sold in 2005.) I am appalled at our rapidly deteriorating global condition so I've written articles for family, friends & colleagues since 2007; warning them and doing my best to explain what's happening, what we can expect in the future and what you can do to prepare and mitigate the worst of the economic, social, political and nuclear fallout. As a public service in 2010 I decided to create a blog accessible to a larger number of people because I believe that knowledge not shared is wasted.
This entry was posted in Collapse 2008, Economic Collapse and tagged , . Bookmark the permalink.

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