Like melting Antarctica to water your lawn: Why LIBOR matters

Posted on July 12, 2012 by


Funny thing about NPR’s Weekend All Things Considered—nobody’s listening, so they spend a LONG time on stories. This weekend, it was a gripping 11.5 minute story of the growing LIBOR scandal.

It’s important because there is a very good chance your adjustable rate mortgage is tied to LIBOR is someway. It’s fascinating because of the audacity and idiocy of the manipulators, as described in the NPR story:

NPR Host Guy Raz: One trader in his daily calendar, his diary, wrote, “ask for a high six-month fix,” as if to remind himself that he’s got to ask his colleagues to cheat for him.

Brown University Mark Blyth: He needs a Post-it note to remind himself to rig world interest rates. That’s like melting Antarctica to water your lawn, which is another reason, I think, that this scandal hasn’t quite gotten the press it deserves yet because it’s so hard to contemplate.

Hear the audio, check out the summary, or read the transcript at NPR.

Posted in: Big Government, Graft