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View Diary: LIBOR just the tip of the Iceberg: other Financial Markets probably rigged (140 comments)

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  •  one of the reasons it's hard to get upset (0+ / 0-)

    about this is that an artificially-lowered LIBOR actually HELPS borrowers.  If you have a student loan or a mortgage, than this fraud probably HELPED you.

    •  Only in the short term. (4+ / 0-)

      It's not helpful if the economy is so shaky that you cannot find work so you can pay back those student loans.  And that, dear heart, is a lifetime of pain.

      "Fighting Fascism is Always Cool." -- Amsterdam Weekly, v3, n18 (-8.50, -7.23)

      by Noor B on Wed Jul 11, 2012 at 05:06:07 PM PDT

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      •  yes (0+ / 0-)

        but how does me getting a better rate for my mortgage and student loans hurt the economy?

        •  By punishing the following: (4+ / 0-)
          Recommended by:
          Brit, the fan man, semiot, Noor B

          -- Cities and states that got less interest on billions in issued bonds
          -- Corporations that got less interest on their bonds as well
          -- Pension funds across the land that were screwed out of millions
          -- Non-profits that lost millions

          The impact is complex, but when you consider that trillions of dollars move based on interest rates, and when you realize that some portion of that moved into the hands of the people tweaking the rates instead of where it was supposed to move, then you see how people can get upset.

          Bruce in Louisville
          Visit me at

          Follow me on Twitter: @brucewriter

          by bmaples on Wed Jul 11, 2012 at 07:41:50 PM PDT

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        •  When your city goes bankrupt (6+ / 0-)
          Recommended by:
          KenBee, Rosaura, Creosote, Brit, semiot, Noor B

          because their bonds are worthless due to this rigging, it won't matter if your mortgage is 12 cents.  You won't want to live there with cops being paid minimum wage and no garbage pick up.

          People said the same damn thing about 401(k)'s...."I'll get to manage my own money and make millions!  And no taxes!  How can this be bad?!".  Well, that 401(k) money is the neverending stream of cash that banksters gamble with.  Half of it was outright stolen a few years ago and STILL people send in that money.

          Your personal "good" has lots of ramifications.

          David Koch is Longshanks, and Occupy is the real Braveheart.

          by PsychoSavannah on Wed Jul 11, 2012 at 07:54:10 PM PDT

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          •  sure but (0+ / 0-)

            I benefit more from the lower rates than I get hurt from public finances being bad (for the record, my city is doing well, too).

            I understand what you are saying, but the ones who get hurt the most are large investors, which we all have so measure of exposure to, but is still mostly made up of the very rich and large corporations.

            Me, personally....I probably come out ahead because of it as a person in major debt.

        •  I could be way off here, but I don't think that (2+ / 0-)
          Recommended by:
          semiot, Noor B

          really gets passed on to you.

          This is not about mortgage rates, this is about behind the scenes, bank to bank rates. This is the thing that is 'keeping inflation at bay'. This is what is setting us up for low inflation.

          Food and fuel costs are things that are not being used to calculate inflation.

          A lack of inflation or deflation is bad for borrowers and good for creditors. This whole thing is about yoking people in debt and increased profits for the long haul.


          Democracy - 1 person 1 vote. Free Markets - More dollars more power.

          by k9disc on Thu Jul 12, 2012 at 02:09:52 AM PDT

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        •  Well, think of it this way: (0+ / 0-)

          any of the businesses and public entities that might have hired you if the economy had remained intact simply cannot, because they can't borrow for expansion and maintenance.    You can't pay either the student loan or the mortgage without a paycheck.

          "Fighting Fascism is Always Cool." -- Amsterdam Weekly, v3, n18 (-8.50, -7.23)

          by Noor B on Thu Jul 12, 2012 at 03:49:39 PM PDT

          [ Parent ]

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