Comments about ‘What others say: Make Libor meaningful’

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Published: Tuesday, Oct. 2 2012 12:00 a.m. MDT

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SEY
Sandy, UT

Libor is everything that is wrong with the current state of economics. Government (or quasi-government agencies) should not be in the business of setting prices. Setting prices in complete disregard of market forces is the very definition of central planning. Interest rates determine the price of borrowed money. When interest rates are artificially determined, it skews the market in general. Prices are the way buyers and sellers know what is in greater or lesser demand and what should or should not be produced. Artificially-set interest rates are the reason for the Great Recession as precipitated by the collapse of the real estate market. The only way Libor can be made meaningful is for it to disappear along with all other central planners of interest rates.

John C. C.
Payson, UT

Consider the corruption of the LIBOR by its member banks who managed to rig rates in their favor, effectively stealing billions of dollars from those less well-connected. Its a good move to transfer the rate setting power to the government. But what's to keep the same major banks from seeking to corrupt the new government agency? I assume they will still want to influence their decisions. A change of one tenth of one percent in that rate could make millions of dollars for the bank involved.

lost in DC
West Jordan, UT

Interesting that even though Geithner and NY Fed KNEW LIBOR was being manipulated, they still used it as one of their major indices. Geithner is a crook who is in over his head.

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