LIBOR — the London Interbank Offered Rate — was the rate banks charged each other to borrow. Simple in concept, enormous in scale. Trillions in loans, mortgages, and derivatives were priced off it every day. Then banks got caught rigging their submissions to profit on trades. The scandal scrapped it. SOFR replaced it. The trading lesson survived the scandal. When interbank rates spike, credit freezes and risk assets sell off. Interbank rates are a fear gauge — then and now. Watch them. This maps to Module 6.1 — Macro Indicators and Sentiment. https://youtu.be/VNhnCN0rXpY
Key Takeaways
LIBOR was the rate banks charged each other to borrow — the global price of money
Trillions in loans and derivatives were priced off it daily
Banks were caught manipulating submissions and the rate was scrapped
When interbank rates spike, credit freezes and risk assets sell off — they're a fear gauge
This maps to Module 6.1 — Macro Indicators and Sentiment
Get the full breakdown and the complete Larke Cycle framework.
For educational purposes only. Not financial advice. Past performance does not guarantee future results. Trading involves risk. Consult a qualified financial adviser before making investment decisions.
I'm Russell Larke — BA (Hons) Business Management, currently completing an MSc in Systems Thinking in Practice, with plans to pursue a doctorate. I've run an environmental consultancy as Managing Director and have traded financial markets for years. I teach the Larke Cycle — a testable framework for understanding market structure beyond chartism. Regards, Russell Larke BA (Hons) Business Management | MSc Candidate (Systems Thinking) Beyond the Chart
What Is LIBOR? The Rate That Ruled the World
LIBOR — the London Interbank Offered Rate — was the rate banks charged each other to borrow. Simple in concept, enormous in scale. Trillions in loans, mortgages, and derivatives were priced off it every day. Then banks got caught rigging their submissions to profit on trades. The scandal scrapped it. SOFR replaced it. The trading lesson survived the scandal. When interbank rates spike, credit freezes and risk assets sell off. Interbank rates are a fear gauge — then and now. Watch them. This maps to Module 6.1 — Macro Indicators and Sentiment. https://youtu.be/VNhnCN0rXpY
Key Takeaways
Get the full breakdown and the complete Larke Cycle framework.
Join the Full Course on Skool →
For educational purposes only. Not financial advice. Past performance does not guarantee future results. Trading involves risk. Consult a qualified financial adviser before making investment decisions.
I'm Russell Larke — BA (Hons) Business Management, currently completing an MSc in Systems Thinking in Practice, with plans to pursue a doctorate. I've run an environmental consultancy as Managing Director and have traded financial markets for years. I teach the Larke Cycle — a testable framework for understanding market structure beyond chartism. Regards, Russell Larke BA (Hons) Business Management | MSc Candidate (Systems Thinking) Beyond the Chart