Now and then when reading the financial news, I realize how incredibly out-of-step with right thinking I am. Take, for example, my recent article, "Replacing LIBOR's Magic." In that article, I suggest that there must be good reasons that LIBOR is so important than asking what those reasons are. I call the things that LIBOR does to make it so important LIBOR's "magic," contending that LIBOR, uniquely, tells us the market's belief about near-term credit risk in the United States.
But apparently, financial market regulators looking at the same chart see no evidence