The TED Spread Placed in Some Perspective

Remember the definition of the TED spread–The difference between what banks and the Treasury pay to borrow money for three months.

This really is a helpful chart. Make sure also to look at the weekly picture and then the monthly chart. Basically, the higher this goes, the more clogged the world financial system becomes, until a heart attack becomes inevitable.

Posted in * Economics, Politics, Credit Markets, Economy