There Is a Bigger Story Behind LIBOR
Published in The Tennessean , Sunday, July 29, 2012 and Forbes with archives . by Richard J. Grant It is often said in philosophy-of-science discussions that “if it explains everything, it explains nothing.” This reminds us of the most-used word to explain everything economic: “greed.” As British Chancellor of the Exchequer George Osborne described allegations of interest-rate index manipulation, “Through 2005, 2006 and early 2007 we see evidence of systematic greed at the expense of financial integrity and stability.” We note in passing that the dates mentioned are conveniently before the current chancellor assumed office in 2010, but we are still waiting for any solid evidence that whatever actions the bankers took to manipulate the London Interbank Offered Rate (LIBOR) had more than a microscopic effect on the markets. This is not to say that LIBOR could not be manipulated: if anything, we should be amazed that ... keep reading Richard J. Grant is a Professo...