Maybe LIBOR doesn’t stand for the “London Interbank Offered Rate”. Maybe it’s really an acronym for the “Lying Interbank Offered Rate.” Click here if you haven’t heard about this. Obviously, the impact of a rising LIBOR on the credit markets will not be good if it turns out that there has been some serious fibbing going on. But for me, the bigger result will come when the markets realize that they have been comforted by Bernanke’s monetary policy innovations and their apparent success. Remember, those people in love with bailouts and programs like TAF were pointing to the reduction in LIBOR as evidence that Bernanke was a genius and these programs were working. HMMMMM!?! If the LIBOR improvements were really a result of lying, then what does that mean for the efficacy of Fed policy and more importantly, what does this say about the real health of credit markets or the equity markets that have rallied on the idea that the credit markets are improving?