My apologies, I am in the last throes of a kitchen remodeling and its a little crazy in the mornings.
That said, so the Dept. of Justice slapped JPMorgan Chase, Citigroup, Barclays, UBS and Royal Bank of Scotland on Wednesday with a $5.8 billion penalty for pleading guilty to manipulating global currency markets and London Interbank Offered Rate (Libor).
Amazingly, despite regulators having e-mails and other correspondence between the traders — whom called themselves the cabal — no criminal charges were brought against any persons.
So we found the “culprit” of the flash crash in his parents’ basement in London trading on his own, but when professionals working for banks act in a cabal to rig every loan written, no criminal charges filed. Please see the cashier on your way out.
Libor is used as the basis for loans written across the globe. No matter a mortgage, car loan or line of credit somewhere in the rate calculation Libor is in the equation.
So the Bureau of Economic Analysts has decided its Q1 2015 reading of the economy is skewed by seasonal adjustments. The same adjustments they have made for years all of a sudden is no good.
If you don’t like the outcome of a game, then change the rules. The first reading of GDP in Q1 was 0.05 percent (or 0.2 percent annualized) does not fit into the Fed’s equation of raising rates in the short-term so the formula must be changed.
I figure around this time in early August, when the first read of Q2 comes out showing two quarters of negative GDP ( the next two readings of Q1 will be negative) the BEA will say that Q2 seasonal adjustments are skewed as well. Fed chair Janet Yellen certainly can’t raise rates in a recession.
And so it goes, they must take us for fools.