Friday, October 10, 2008

TED Spead At Record

Another, indicator to watch, in addition to M1 money supply, for an indication of a subsiding of fear, is the TED spread.

The TED spread is the difference between the LIBOR interest rate and the three month T-bill rate. Usually the TED spread is less than 0.5%. The higher the spread, the greater the perceived credit risks. The spread rght now is 4.23%.

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