Wednesday, June 12, 2013
In an interview with Bloomberg news, CFTC Chairman Gary Gensler states he would like to replace LIBOR. The only problem is that, when asked what he would like to replace LIBOR with, he has no answer. Perhaps we should replace the market based LIBOR (of which the lowest and highest bids are actually dropped before calculating in order to filter out potential manipulation) with the Federal Funds Target Rate. Yes, replace a rate that has been sometimes manipulated by market participants with a rate that is constantly manipulated by central bankers. Not surprising that Gensler then complains that the CTFC is underfunded and, of course, needs more resources from the brain trust known as the 113th United States Congress.
Posted by www.nydivide.org at 7:11 AM