Manipulation of the LIBOR would impact all the variable rate mortgages that are indexed to it. In California, home loans with a 0% interest rate for the first

Manipulation of the LIBOR would impact all the variable rate mortgages that are indexed to it. In California, home loans with a 0% interest rate for the first year and very low rate for next few years (negatively amortized) were very popular and pushed by Washington Mutual and other banks. But these loan's interest rates were tied to the LIBOR. A lot of foreclosures were do to these types of loans where the payment will increase 10 - 20%. How often does ones income increase 20% in a year or two? The economist article is not exaggerating IMO. How these banks are dealt with by our governments will illuminate the extent banks have corrupted our governments.