I keep hearing that we have a "credit crisis" that must be solved by giving 700 billion to the banks in return for their crappy mortgages.  I keep hearing that we must do this RIGHT NOW so this "credit crisis" will not bring down the whole economy.  It's phony and the numbers prove it.

I wrote a week or so ago that the LIBOR, the London Interbank Offered Rate (which is set by 16 big banks including Citibank) was 2 percentage points less than a year ago.  Yet every day, I hear that "credit is drying up" and "banks won't lend to each other."  It's phony.

Bogus fact number 1: the LIBOR is at an all-time high.  Not so.  True, the rate rose sharply today, just like the stokc market dropped sharply yesterday.  But as the chart below shows, the LIBOR is still well below its high from as recently as a year ago.

Also, I got a call on my cellphone today from "John at MBNA" telling me that my line of credit was approved.  I didn't even know I asked for a line of credit.  The credit crisis is phony, just li ke the "biggest drop ever on the stock market" yesterday was phony.

Comments (0)

Subscribe to this comment's feed