Tuesday, December 11, 2012

Enemies of the people, unite

You have nothing to lose, now that you've been arrested for being unfashionable in London;

Three men have been arrested in connection with continuing investigations into the manipulation of the Libor inter-bank lending rate.
Libor being a pretend interest rate that no one actually borrows at, nor believes in.  Certainly not the Bank of England;

...the strangeness of this situation was captured very well by Sir Mervyn King in testimony to the Treasury Select Committee in late November 2008, when he had this to say about Libor.
"It is in many ways the rate at which banks do not lend to each other, and it is not clear that it either should or does have significant operational content. I think it is convenient, very often, for people to justify what they do for other reasons, in terms of Libor, but it is not a rate at which anyone is actually borrowing. It is hard to see how it can actually have much of an impact."

Yet, now three men are in jail...er, gaol.  To satisfy the ignorant craving for a scapegoat.

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