How LIBOR Impacts Financial Models and Why the Scandal Matters, Mike Konczal, Fellow at the Roosevelt Institute.
"If we can’t rely on the accuracy of basic measurements used to set loan prices, we can’t respond effectively to brewing financial crises. Matt Taibbi asks why nobody is freaking out about the LIBOR scandal, Robert Reich calls it the scandal of all scandals, and Dylan Matthews has a great explainer of the whole thing here. Abigail Field has more at Reality Check. This can be confusing stuff, so I want to go through a very simple example of how this impacts the markets. Here’s a basic equation for the price of a loan…"