Friday, September 26, 2008

Watching the TED Spread

by Bill McBride on 9/26/2008 02:22:00 PM

The TED Spread from Bloomberg is still very high at 2.91, although down a little from yesterday.

Note: the TED spread is the difference between the three month T-bill and the LIBOR interest rate. Usually the TED spread is less than 0.5%. The higher the spread, the greater the perceived credit risks (compared to "risk free" treasuries).

This will probably be one of the first indicators to show any benefit from any plan.