Posted by
m0t0r1zed on Tuesday, September 30, 2008 8:33:42 AM
link to article by Alan Zibel explaining what Libor is and how it is a reflection of the current credit difficulties ... in case ya wondering. seems a lot of other news entities printed the same article.
just been watching CNBC, and they kept saying how impossible it was to explain to the average american what Libor is because we are all a bunch of idiots.
hmm, looking at historical charts of Libor rates ...
Libor historical rates
Bloomberg article on jump in Libor
hmm, wonder what the actual volume of lending is? and are there alternative sources of funds? also, wonder if i can look at historical Libor rates without looking at other factors in the economic environment at that time ... and after an orgy of easy credit, you'd expect some retrenchment. pfft, wonder if the "solution" might end up causing another crisis in the future like an oscillating wave with too much overshoot. how much of the crisis is irrational fear vs. rational behavior? questions questions questions.
whom do you trust?
no one.
even the experts can't guarantee that the bailout will work. and i sense that they lack the proper tools for rigorous analysis of the problem.
but it would be interesting to really dissect this thing apart and see how it ticks ... so time intensive ... would be tricky to figure out all of the different levels of selection, the relevant time scales, and the many species involved within the economic environment. meh. don't have time. time. time. time. =P