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Two years ago, a major scandal rocked the world after it was revealed that big international banks had long been manipulating the Libor interest rates to fraudulently boost their profits. As outrageous as the Libor rate-fixing scandal was, it pales in comparison to another Libor “scandal” that is occurring at this very moment, but has received virtually none of the attention that it rightfully deserves. The ultimate fallout of this much larger, little-known Libor “scandal” will be nothing less than an international financial crisis.
The next two sections explain the basics of Libor and the rate-fixing scandal, but can be skipped for those who are already familiar with it.
originally posted by: rickymouse
a reply to: bobs_uruncle
I think they are trying to entice a controlled correction because the stock market is too high. The financial system does that from time to time. The influential rich must have pulled a lot of their money out already so Forbes is just calling last call.
originally posted by: TheSpanishArcher
Nothing happened last time and nothing will happen again, sadly. The bankers have all the control they need to do whatever they want. Since we can't do jack squat about it, it will continue to get worse until the house of cards gets blown down and all hell breaks loose. Fun times for all.
I would love to be wrong but I don't see this ending well.
originally posted by: TheSpanishArcher
a reply to: bobs_uruncle
You misunderstand, I meant nothing happened to the bankers who ripped off millions of people out of, probably, billions of dollars. Not even a slap on the wrist.
Short of a worldwide revolution to oust the International Banking Cartel from it's perch, nothing will change except like you said, it will get worse for us - not for them. Which isn't really change, just more of the same but that's nitpicking.
originally posted by: Zcustosmorum
a reply to: bobs_uruncle
Apparently the similarities between Libor and the Royal Bank of Scotland here in the U.K. are startling. RBS ofc have been given the biggest bail out of all time (and another may be required) & the auditors who work for them (Deloitte) weren't even dismissed for their part in creating the major debt. Mis-seling & mis-pricing were al deliberate actions, those at the top have made a fortune out of the rest of us.
In a roundabout way, the U.K. government is responsible for financial fraud against the U.K. people.
originally posted by: earthling42
Sorry but this story seems kinda wrong.
The libor is as the article says, 'London Interbank Offered Rate' that major banks charge each other for loans.
The graphics shown is the interest rate which the fed or any other central bank sets to either stimulate or slow down the economy.
While it certainly is unusual for the interest rates to be so low for such a long period, a lot of money was lost during the crisis, hence the economic growth is slow or even negative.
So i do not see a rate hike anytime soon because it will certainly mean a shrinking economy as borrowing cost are more expensive.
I would say it is deregulation that is the cause of these bubbles, remember the ninja loanes and other scams from banks.
They are simply to big and able to influence the market for their own gain.
And they can do that without any risk because it is the taxpayer who will pay for the losses if and when it goes wrong.
There must be a line between private business and the state, no bailout and the banks should be 'to small to bail', cut them into pieces and let them fail if they mess up.
I am sure that this will mean that bankers are going to be a lot more carefull knowing that they won't be bailed out if they take to much risk.
There should be tight regulation, banks do not create growth, the entrepreneur who starts projects and creates jobs does, but therefore he needs money to invest and when borrowing cost are lower it is more attractive to do that.