Comments on: How LIBOR Threatened to Destroy the Global Banking System http://www.moneymorning.com/2008/10/21/london-interbank-offered-rate/ Investment News Provider Thu, 19 Nov 2009 15:36:16 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Financing the Stimulus May be a Massive Challenge, Treasury Market Shows http://www.moneymorning.com/2008/10/21/london-interbank-offered-rate/comment-page-1/#comment-15558 Financing the Stimulus May be a Massive Challenge, Treasury Market Shows Fri, 06 Feb 2009 09:30:17 +0000 http://www.moneymorning.com/?p=2787#comment-15558 [...] a MarketWatch.com news story also released Wednesday, analysts are worriedthat the interbank market is becoming tighter again, since the three-month London Interbank Offered Rate (LIBOR) has risen from a low of 1.09% on Jan. [...] [...] a MarketWatch.com news story also released Wednesday, analysts are worriedthat the interbank market is becoming tighter again, since the three-month London Interbank Offered Rate (LIBOR) has risen from a low of 1.09% on Jan. [...]

]]> By: C Jooste http://www.moneymorning.com/2008/10/21/london-interbank-offered-rate/comment-page-1/#comment-11284 C Jooste Mon, 27 Oct 2008 06:11:39 +0000 http://www.moneymorning.com/?p=2787#comment-11284 This is well written, researched and informative. We use these rates (leveraged for the interest with no leverage on the investment) as part of our income in our company. We found that very few people outside the banking sector knows about this. This is well written, researched and informative. We use these rates (leveraged for the interest with no leverage on the investment) as part of our income in our company.

We found that very few people outside the banking sector knows about this.

]]> By: chris erickson http://www.moneymorning.com/2008/10/21/london-interbank-offered-rate/comment-page-1/#comment-11280 chris erickson Mon, 27 Oct 2008 02:54:25 +0000 http://www.moneymorning.com/?p=2787#comment-11280 Well the goverment has bailed out the banks & wall street & their stocks still fall & they wont lend money out & as I said before they have raised intrest rates ..So now what . we are lossing jobs , laying people off & the politicians are still deff dumb & blind , so are the banker / lenders... They fore close intead of lowering the intrest rate .. They people who made a fortune are being saved after they stole all the money ... The Fed has lowered intrest rates to 1.5% ; yet the banks still want to charge 6 to 7 % interest...So what is the gov going to do for main street besidesraise taxes ..I said before that to fix this mess the banks , lenders ; holders of these loans/enities need to adjust the intrest rates & that the goverment now that it has taken Fanni & Freddi back can do this ; the banks that dont want to help let thim fail...The intrest rate should be dropped on all existing loans to 4.5% fix for 30 years ...Instead they are letting a bank rate set in europe control the rates in this country it is call the LIBOR..This is b/s & stupid so the banks will have more forecloseures & failures then they willwant more help ... as I said in previous posts use the KISS rulwe keep it simple stupid.But nobody gets ir espicialy congress aa7 the banks / holders of the so called toxic debt..... Well the goverment has bailed out the banks & wall street & their stocks still fall & they wont lend money out & as I said before they have raised intrest rates ..So now what . we are lossing jobs , laying people off & the politicians are still deff dumb & blind , so are the banker / lenders… They fore close intead of lowering the intrest rate .. They people who made a fortune are being saved after they stole all the money … The Fed has lowered intrest rates to 1.5% ; yet the banks still want to charge 6 to 7 % interest…So what is the gov going to do for main street besidesraise taxes ..I said before that to fix this mess the banks , lenders ; holders of these loans/enities need to adjust the intrest rates & that the goverment now that it has taken Fanni & Freddi back can do this ; the banks that dont want to help let thim fail…The intrest rate should be dropped on all existing loans to 4.5% fix for 30 years …Instead they are letting a bank rate set in europe control the rates in this country it is call the LIBOR..This is b/s & stupid so the banks will have more forecloseures & failures then they willwant more help … as I said in previous posts use the KISS rulwe keep it simple stupid.But nobody gets ir espicialy congress aa7 the banks / holders of the so called toxic debt…..

]]> By: Michael R. Scott http://www.moneymorning.com/2008/10/21/london-interbank-offered-rate/comment-page-1/#comment-11277 Michael R. Scott Sun, 26 Oct 2008 20:39:02 +0000 http://www.moneymorning.com/?p=2787#comment-11277 Dear Sir, Who is kidding who? The Libor is high because many of the banks are holding, nearly worthless auction rated securities on their assets sheets at their original, inflated values. Only when those securities are listed seperately as "assets" and only when they are fairly valued, can we hope that the Libor rate will come down And then only for the few prudent lending institutions that did their research and stayed away from these toxic instruments. Michael R. Scott Dear Sir,
Who is kidding who? The Libor is high because many of the banks are holding, nearly worthless auction rated securities on their assets sheets at their original, inflated values. Only when those securities are listed seperately as “assets” and only when they are fairly valued, can we hope that the Libor rate will come down And then only for the few prudent lending institutions that did their research and stayed away from these toxic instruments.
Michael R. Scott

]]> By: Andrew Smoak http://www.moneymorning.com/2008/10/21/london-interbank-offered-rate/comment-page-1/#comment-11178 Andrew Smoak Thu, 23 Oct 2008 05:56:04 +0000 http://www.moneymorning.com/?p=2787#comment-11178 I wish they would make the banks all pay the price for their mistakes. Leverage was the key abuse, otherwise they would not be so deeply troubled. The U.S. rates will have to rise in time, as we have inflation on the horizon. Also, the unscrupulous British Banker's Association has been setting the (LIBOR) rate too high & they are completely out of touch with today's reality. The European market has seized up again, therefore they have no business being 3-4 points above the short-term U.S. Treasury Bills. I guess we all need to give up on the banking system & Fiat money. Maybe gold & silver will need to make a come back after all! I wish they would make the banks all pay the price for their mistakes. Leverage was the key abuse, otherwise they would not be so deeply troubled. The U.S. rates will have to rise in time, as we have inflation on the horizon. Also, the unscrupulous British Banker’s Association has been setting the (LIBOR) rate too high & they are completely out of touch with today’s reality. The European market has seized up again, therefore they have no business being 3-4 points above the short-term U.S. Treasury Bills. I guess we all need to give up on the banking system & Fiat money.
Maybe gold & silver will need to make a come back after all!

]]> By: Beauty and yoga - Suryanamaskar http://www.moneymorning.com/2008/10/21/london-interbank-offered-rate/comment-page-1/#comment-11144 Beauty and yoga - Suryanamaskar Wed, 22 Oct 2008 11:08:44 +0000 http://www.moneymorning.com/?p=2787#comment-11144 [...] How LIBOR Threatened to Destroy the Global Banking System [...] [...] How LIBOR Threatened to Destroy the Global Banking System [...]

]]> By: Online Trading http://www.moneymorning.com/2008/10/21/london-interbank-offered-rate/comment-page-1/#comment-11131 Online Trading Wed, 22 Oct 2008 08:32:04 +0000 http://www.moneymorning.com/?p=2787#comment-11131 An excellent article which I shall reference from our site An excellent article which I shall reference from our site

]]> By: admin http://www.moneymorning.com/2008/10/21/london-interbank-offered-rate/comment-page-1/#comment-11117 admin Tue, 21 Oct 2008 16:04:17 +0000 http://www.moneymorning.com/?p=2787#comment-11117 That is per year. Thanks for your interest. That is per year. Thanks for your interest.

]]> By: Donald E Swibes http://www.moneymorning.com/2008/10/21/london-interbank-offered-rate/comment-page-1/#comment-11116 Donald E Swibes Tue, 21 Oct 2008 16:01:33 +0000 http://www.moneymorning.com/?p=2787#comment-11116 Does "The money map Report" cost $49.0/mo or per year? Does “The money map Report” cost $49.0/mo or per year?

]]> By: Mark Baumann http://www.moneymorning.com/2008/10/21/london-interbank-offered-rate/comment-page-1/#comment-11112 Mark Baumann Tue, 21 Oct 2008 14:36:34 +0000 http://www.moneymorning.com/?p=2787#comment-11112 This is a well written and informative article. From it I am developing a bank investment strategy: Watch for the divergence of libor rates on banks, the higher rates will be charged to the riskiest banks, likewise, the lowest will be charged to the most solid banks. Short the highs go long on the lows. "As the market discovers these banks’ more severe problems, the LIBOR rates for different banks will diverge, as they did in 1974" How do I track the LIBOR rates for different banks? This is a well written and informative article.
From it I am developing a bank investment strategy:
Watch for the divergence of libor rates on banks, the higher rates will be charged to the riskiest banks, likewise, the lowest will be charged to the most solid banks. Short the highs go long on the lows.
“As the market discovers these banks’ more severe problems, the LIBOR rates for different banks will diverge, as they did in 1974″

How do I track the LIBOR rates for different banks?

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