Bove: "It is time that this society realizes that it must understand the banking industry and how it interacts with the economy rather than dissolving into meaningless hyperbole again."
Read it at CNBC NetNet
Did Fixing Libor Keep Financial Crisis From Getting Worse?: Bove
by Jeff Cox | Senior Writer
The issue is representation and misrepresentation. Markets are represented to participants as free in the sense of not manipulated secretly. It is true that central banks attempt to micromanage economies through finance via interest rate setting, and also can control the yield curve, and that their operations are secret to the extent that the minutes are not revealed within a useful time frame. But the operations are standard operating procedure and they are acting institutionally. Everyone knows this and anticipates future central banking action. This is called the influence of "expectations" and such expectations play a role in financial and economic understanding.
However, Bove seems to mean by "this society realizes that it must understand the banking industry and how it interacts with the economy" that everyone should be on notice that the financial system is secretly rigged in such a way that SOP is not followed when it suits the major players because they determine the direction of the economy? Whaat?