Fed Funds Vs Libor

Here we see an even better example of the relationship between the Federal Reserve Fed Funds Rate and LIBOR (London Interbank Offer Rate). LIBOR more precisely gives a measure of risk in lending to commercial banks. Note the fed funds rate has a direct impact on the overall risk to the credit system. So this begs the question, who would allow 17 rate hikes in a housing boom that was a direct result of a credit boom when the result could only be the destruction of the entire system? As uncomfortable as the answer might be its worth being answered. It doesn't take a rocket scientist to figure this out.