Thursday, 19 July 2012

Did the cheats get it right then?

I heard a pundit on the radio saying that the stability of the LIBOR rate over a long period should have raised suspicions, as it was out of kilter with the rates actually being traded in the market.  There’s a profound contradiction here.  If the markets were ignoring LIBOR, then what’s it for?  And if they weren’t, isn’t stability exactly what we’d all like to see?

Bretton Woods, anyone?

3 comments :

  1. Says it all really.
    This looks like stability?
    Bobbing along I suppose. Unlike the market morons.
    I wouldn't invoke Bretton Woods without another JMK to sort it. Who can take up that challenge?

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  2. Has Richard posted the Poole tide tables for any particular reason?

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  3. Ah yes - the magic of hindsight.
    Although the markets don't need to take notice of manufactured indices do they?

    If you want to hear stories about made up performance figures you've come to the right place...

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