LIBOR generally follows the FFR, although the tracking is less than usual of late.
I believe that most of the talk of “walkers” and “jingle mail” is just urban legend BS.
Think stock market crash with the govt trying to figure out how to keep people paying for the stocks that they bought with borrowed money at inflated levels, so they don’t dump them on the market to depress the market further.
Try ANYTHING to keep people from walking away…
The few in govt that really understand what is happening are crapping their pants. Others are just overpaid idiots.
So which is it? Is “walking away” a myth, or is it a problem of systemic proportions?