Tag Archives: BAC

higgs boson and Libor

To Libor or to Higgs Boson

higgs boson and Libor

  • The Large Hadron Collidor (LHC) was built to effectively find the hypothosized Higgs boson, the god particle, at a cost of 7.5 billion dollars. They ‘think’ they’ve found it.
  • Libor (London Interbank Offered Rate) on the other hand was developed as a reference rate for financial products such as syndicated and variable rate mortgages.

Libor effectively touches 800 trillion dollars, yes, 10 times the real economy. Trillion… Think stars. 10 trillion in mortgages, a trillion or two in credit card debt,  and 300 + trillion in swaps, etc… Ok so where’s the Libor connection? You have a select group of large banks proposing interest rates, and the average of their propositions become Libor. Libor is the interest rate setting god particle, it’s the part of your mortgage equation which you never see, because nobody really knows what IT is. Atleast not until 11am London time, after exchanging a few emails.

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Einstein and the Neutrino

Art Cashin is right about one thing: We can throw the book out.

The markets are reacting like Kim Delaney, they’re in semi-panic mode. Thanks to ZeroHedge and like-minded sceptics worldwide, the global financial and political systems are being called into question.

Then, out-of-nowhere, Cern in Switzerland finds a partical (a Neutrino) that moves faster than the speed of light.

I listen rarely and barely to pundits and a Neutrino sounds more like a breakfast cereal than something able to move faster than light, but maybe my scepticism is misplaced.

I just don’t understand how you can doubt Einstein? It’s ok to doubt Gold, I did it only yesterday. It’s ok to doubt Obama, he’s juggling fanatics. It’s even ok to doubt Goldman Sachs ($GS) and BofA (BAC). But Einstein?

What’s next?