Why is the manipulation of LIBOR such a big deal?Submitted by couvi on Sat, 07/07/2012 - 16:33
Am I missing something? Central banks the world over manipulate interest rates as a primary function of business. I feel like I am living in the twilight zone when I hear all of this fuss over LIBOR. What is it about the nibbling mouse LIBOR that releases such a fervor of outrage, when the thundering elephant of central banking (the Federal Reserve most notably) has manipulated interest rates to ZERO?
This is so puzzling that, before I chalk it up to ignorant faith in a government organization (central banking) vs. the now popular skepticism in what are wrongly perceived to be private free-market institutions (the various large banking institutions which are not central banks), I must be certain that I have not missed something. Is this really just ignorance which has caused such misallocated criticism of the various forces behind interest rate manipulation?
If so, this will certainly be a cause to get government MORE involved in banking. More centralization. More intervention. Less freedom. Less prosperity. How sad.