When I first heard about LIBOR in 2002, I was surprised that the number is just based on a survey of bankers. Surely there would be accuracy issues with that?
But at that time I was young and had no finance experience, so though that the adults in the room knew best. Turns out not!
I don't think the base problem is that people shaded their numbers one way or another, it's that the system is designed wrong.
But at that time I was young and had no finance experience, so though that the adults in the room knew best. Turns out not!
I don't think the base problem is that people shaded their numbers one way or another, it's that the system is designed wrong.