The TED spread soars–again

The difference between what banks and the Treasury pay to borrow money for three months, the so-called TED spread, was 2.73 percentage points earlier today, the highest since Sept. 18, when it was 3.13 percentage points, the most since Bloomberg began compiling the figures in 1984.

A chart is here and, no, this isn’t good at all, as 3 where it hit today and last Thursday is at 1987 stock market crash levels.

Update: There is much more here, including a longer term short.