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In the simplest terms, LIBOR is the average interest rate which banks in London are charging each other for borrowing. It's calculated by Thomson Reuters - the parent company of the Reuters news agency - for the British Banking Association (BBA), a trade association of banks and financial services companies.Why Does Libor Matter?
These traders influenced the pricing of the London Interbank Offered Rate or Libor, a benchmark that dictates the pricing of up to $800 trillion of securities (yes trillion).$800 trillion?
In the United States, the two biggest indices for adjustable rate mortgages and other consumer debt are the prime rate (that is, the rate banks charge favored or "prime" consumers) and LIBOR, with the latter particularly popular for subprime loans. A study from Mark Schweitzer and Guhan Venkatu at the Cleveland Fed looked at survey data in Ohio and found that by 2008, almost 60 percent of prime adjustable rate mortgages, and nearly 100 percent of subprime ones, were indexed to LIBOR.
[T]he eurozone's bailout fund (backed by taxpayers' money) will be taking a stake in failed banks.The ESM is now a permanent bailout fund for private banks, a sort of permanent "welfare for the rich." There is no ceiling set on the obligations to be underwritten by the taxpayers, no room to negotiate, and no recourse in court. Its daunting provisions were summarized in a December 2011 youtube video originally posted in German, titled "The shocking truth of the pending EU collapse!":
Risk has been increased. German taxpayers have increased their liabilities. In future a bank crash will no longer fall on the shoulders of national treasuries but on the European Stability Mechanism (ESM), a fund to which Germany contributes the most.
In the short term, these measures will ease pressure in the markets. However there is currently only 500bn euros assigned to the ESM. That may get swallowed up quickly and the markets may demand more. It is still unclear just how deep the holes in the eurozone's banks are.
[Maariv journalist Uri] Dan reveals a little and conceals much when he hints that Arafat's death was not caused by any illness. He himself suggested to Sharon that Arafat be captured and brought to trial in Jerusalem, like Eichmann, but Sharon reassured him that he was dealing with the problem in his own way. Then Arafat fell ill, was flown to Paris for treatment and died. Was Sharon involved? This is what Dan wrote then in Maariv - that in the history books, prime minister Ariel Sharon will be remembered as the man who eliminated Yasser Arafat without killing him. Let every reader figure it out for himself.Now, a team of researchers has tested personal artifacts provided by Arafat's widow, Suha, and found highly elevated doses of polonium (in some cases 10 times the expected dose) in many of these objects. They found a type of polonium not occurring naturally that could only be produced in a nuclear reactor. Suha Arafat is asking that the PA exhume her husband's body and test it for polonium. What they find will determine whether the element killed him or not.
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