It’s been amazing to watch SOFR do in real-time what its detractors had warned about the entire time. The Federal Reserve through its various means pushed the private market to adopt this thing after having demonized LIBOR for going on a decade. Why? Not any crime, the truth is LIBOR is a eurodollar rate that far better represents the monetary system as it really is.
And what that is isn’t the easy stuff they teach in all the Economics textbooks. Real money is horribly complicated, geographically expansive, and bank- rather than central bank-effective.
Read Full Article »
