Hannes Kury 7 Report post Posted May 1, 2013 I stumbled over this article (http://www.rollingstone.com/politics/news/everything-is-rigged-the-biggest-financial-scandal-yet-20130425) and found it shocking and sobering. Combined with the fact that the Fed with its policies prevents that people with savings get any money for loaning their savings I think the current times are exceptionally difficult for investors. The article is a bit long to read but I thought maybe some of the members would be interested. Share this post Link to post Share on other sites
cwelsh 1,549 Report post Posted May 1, 2013 Its actually a pretty good summary of what's been known for quite a while now. When I first learned of the LIBOR fixing, I was stunned. I started running numbers, and well, the article sums it up best: "Translation: When prices are set by companies that can profit by manipulating them, we're fucked." A $329 TRILLION DOLLAR market, being manipulated by about a dozen banks, at a rate of 10 basis points or so a day -- so what, who cares, its ten basis points on a loan. Well that only works out to about $329 billion on money manipulation per year -- o wait, that assumes no compounding, and this manipulation occurred daily. What's a 10 basis point daily manipulation, compounded, work out to over a year? North of $450 billion. And that's on only one market. (I wonder where those billions are going.....) Share this post Link to post Share on other sites
