I use the old `flowing river` analogy for the world flowing in time.
When sitting on a hypothetical rock, looking down the river, into the future; some things look `right` and some look `too odd to be right`.
This `libor thing` could be a very big happening `mid-stream`, that could alter the look of the entire river.
Already it was hard to imagine how the banks could look in the future. No scenario looked `right`.
The libor scandal could be the flow altering thing, that makes some of the `wrong` scenarios start to look possible.
Basically, the world banking (especially European) system was another of those `impossible problems`.
The libor scandal could force Policy Makers to `do something` about them.
Normally, `Policy Makers` are politicians; but politicians favored way of dealing with problems (throwing money at it), may well not be possible as the media play the libor scandal to tax-payers who already lean towards blaming banksters for many of their problems.
So, what can the politicians do, without being able to cover things with tax-payer money~?
The answer may have poked its head out at the end of last week, when Euro pols talked of giving banking supervision over to the ECB.
The libor scandal will hit most all of the major banks of the world. They will be fined billions, sued for billions more and have to lose most of their top people. This is going to be a mega-shake-up.
The banking world may change completely~!
If central banks are going to be handed the baby, they are going to see to it that the baby is baby sized (not Godzilla monster sized). They would separate off the obvious gamblers and make things as boring as possible.
I can see all this in the water. It is possible and looks right.
The thing that bothers me, is that I have to then over-lay (factor in) the rest of the problems (general over-indebtedness) and still have a picture that looks `right`.
That is proving to be a bit tricky.