Happy Libor Day
September 30, 2008 at 8:53 pm
For those among us who are huge fans of Libor, imagine our thrill to hear this boffo mention of our favorite credit offered rate by none other than President Bush’s own spokesman Tony Fratto at today’s press briefing:
You hear us talk about credit markets, right? Well, something we look at is the Libor rate. Well, can anyone — raise your hand if you’re familiar with the Libor rate. The London Interbank — Bloomberg would know. All right, the London Interbank Overnight [Offered] Rate. It’s banks lending to banks. That is a critical number.
Well, it reached — that spread reached an all-time high last night. Okay? I mean, that is our communications challenge, is to explain why the Libor rate is at all relevant to an American’s ability to get an auto loan, or a small business’ ability to maintain their payroll account at a financial institution. There are a lot of steps between the Libor rate and the homes of Americans. So we obviously have a challenge.
Obviously so. And just like George Washington, we cannot tell a Libor.



























