Used to be Bankers were Staid
This entire rigging of LIBOR strikes me as incredible. The Wall Street Journal ran an editorial today which sounded an awful lot like their reaction to the mortgage debacle: The government made me do it. In the case of Barclays, the WSJ pointed out that Barclays consulted with the Bank of England, and even the New York Fed (Jamie Dimon -the head of JP Morgan who just lost two, or maybe nine, billion dollars on bad bets- being one of its members, BTW).
As usual, the ranting of the Wall Street Journal leads to a screed filled with irony and just stuff I’d never thought of before. The final couple of paragraphs went something like “HA! And everyone says CDO’s are bad, when the spreads in 2008 clearly questioned accurate LIBOR numbers.” So derivatives not only are good for destroying the entire world economy, they are also good for exposing market rigging. But the market rigging never bothered anyone until recently, because I guess no one much pays attention to what derivative spreads are saying or something, I don’t know. It’s all completely crazy.
That that bastion of free market forces, the Wall Street Journal, would attempt a defense of rigged markets is in itself kind of weird, but that’s why I love their op ed pages.
My husband keeps telling me we need to ditch our subscription. Ha! How else can you understand the convoluted twisting of the conservative mind?
the attachments to this post: