Think it is high time that people revolt against those large banking corporations. Talk about dictatorship and that's a classic one. Not only are they allowed to get away with it all, but they get bailed out to when they go short on funds!
Can anyone please, please, pretty please, explain to me in layman's terms how is this not fraud? I'm unable to grasp that from any account I've read of this issue.
It's a very complicated issue, but I think it's worth reading over. You'll get it.
No, really. There's an underlying price fixation scheme at the bottom of it, along with bank employees chatting about intentionally manipulating an index that's theoretically supposed to be used as an index to calculate interest rates for interbanking.
I just don't get why this is NOT fraud. Could you please be kind to this programmer and explain that to me?
The issue with LIBOR inherently is that since it measures the cost of borrowing for banks, it requires banks to self-report the figures. In essence, there is not really a check and balance. Since the number is reported every day, it becomes unrealistic for an outside observer to come and say, "Well, really, is that your cost of borrowing today?"
Well, yep, they don't learn.
"Hey, what should we do after various bank malpractice and fraud led most of the world into an economic crash... Hm... I know! Let's to more fraud! Why? Because I can retire on these fat earnings before anybody notices!"
For a capitalist economy to work, fraud and dishonest practices must be strictly suppressed, and above all, no one must be allowed to profit from it. Otherwise, it inevitably leads to repeated failure... and in a capitalist economy as widespread and interconnected as ours, it leads to repeated failure on a very damaging scale.
give a man a bank and he will rob a country
I've read every major market is similarly rigged, for instance there is evidence of massive strategic naked short selling of paper gold (GLD etc.) to make the dollar seem stronger than it is, etc. etc.