"LIBOR is an acronym for the Londer InterBank Offered Rate, and is also known as Eurodollar deposits. It is the average interest rate paid on deposits of US dollars in the London market. It is the interest rate at which lenders can borrow money from other banks. As such, it measures the cost of capital for a bank."So, LIBOR drives a lot more than just mortgages, it's the basis for interbank lending, business loans, securitization, government lending and more...
"Competitive pressure will increasingly lead to long-term stability in the spread between PRIME and LIBOR. The cost of capital for most major lenders is similar, leading to similar consumer interest rates. Since most lenders publish the interest rates they charge, there is little reason for one major lender to undercut the others on price, since they know that the others will quickly match rates. Any advantage will be short-lived."
It’s all just a part of the crooked markets! The sad part of it is that this happen with the acquiescence of the government who should be protecting the public. This seems to be a recent phenomenon due to computer controlled markets.
How in the world can the individual investor survive when major monetary agents are controlling it with computer controlled buy/sale orders? I see no chance for the individual investor in anything! They say our benefits lie in keeping investments for years for retirement - Well, good luck with that! I’ve seen what that does these days - it seems to be a crap shoot for us but a great benefit for the big money folks and their computerized market controls.
They continue to drain the money from the small investor and I see no changes for the future.
Yes, you can get lucky on some stocks, but you better be just that “lucky” because in the end, only the big money investors will survive.
Damn, I hate what the stock market has become. It used to be a safe haven for the little people, now it is a means of taking money from the small investors by the large corporations. They do well, the markets go up, and the rest of us lose...
That is true, but I doubt you’ll find a bank that complains it’s been cheated. They know what the deal is.