Editor's Choice for June 22
Libor?
Is Libor "useless" as the FT Alphaville's blog posits? Izabella Kaminska noted in her post on June 22 that "central banks have successfully driven down Libor rates thanks to the Fed's TAF facility." What does that bode for the longer-term macro-economic situation? This is sure to become the subject of more debate as wealth managers continue to adjust their own and clients' long-term expectations for their borrowing, portfolios and recovery. In order for banks to lend again and real recovery to take hold, rates for lending must reach some sort of real equilibrium with enough incentive for them to lend but low enough attract consumers--and of course they need to have enough capital to lend. So far, the lending is not apparent, however, according to the latest report on lending from the Treasury Department.
Comments? please send them to kmcbride@wealthmanagermag.com
About the Author
Kathleen McBride, AdvisorOne
Kathleen M. McBride, AIF ® is the Wealth Editor in Chief at AdvisorOne.com and was Editor in Chief at Wealth Manager, and Wealth ManagerWeb.com, (now part of AdvisorOne.com). She was Senior Editor at Investment Advisor. She has worked in journalism on-air, in print, and on the Web. She is a founder of The Committee for the Fiduciary Standard, working to ensure that investors have access to financial advice that is in their best interests.
After beginning her career on Wall Street as a broker, bond trader and then an investment advisor at a major bank, she ran new-media startups and developed interactive financial content with major media companies. McBride holds a BA from New York University and has completed the Investment Strategies and Portfolio Management program at The Wharton School of The University of Pennsylvania. She is an Accredited Investment Fiduciary with the Center for Fiduciary Studies.
