Money manager Michael Pento says the biggest unreported story is the skyrocketing interest rate of LIBOR.
What’s that? Pento explains, “LIBOR, and people don’t understand or talk about it, is the London Inter-Bank Offered Rate. This rate has gone from 0.3% at the end of 2015 to 2.3% today.
The London Inter-Bank Offered Rate is the rate that is applied to $370 trillion of loans and derivatives. I did not say “B” billion or “M” million, I said “T”. $370 trillion worth of derivatives and loans, from credit cards, to student loans, to auto loans are priced off of LIBOR.
That is the biggest reason why the stock market is rolling over because the cost of borrowing money is going up very, very sharply.
All of this is going to hit a crescendo in October of 2018.”
- Source, USA Watchdog
