July 12, 2012
On July 7, Mark Blyth, a faculty fellow at the Watson Institute, explained to All Things Considered Guy Raz what LIBOR rates are and why people in the US should care.
“The big deal about it is, even if the attempts to manipulate [LIBOR rates] aren’t successful, you’re still talking about the reference rate by which practically every contract in the world -- from the most complex derivative to the credit card in your pocket -- is actually set,” Blyth told Raz. “Your car loan’s probably set in reference to LIBOR. Your mortgage is set in reference to LIBOR. Subprimes in particular.”