TED spread
Shows how willing the banks are to loan to one another.
Click on the five year button to get a better idea of where things stand. Before May of last year it was rarely above 0.5.
9/07 - 3/08 it hit 2 three times.
And then in 9/08 it hit 3 and now has hit 4.5.
If things continue in this fashion it will drop to 4 again before heading north of 5.
Or this could be a huge peak and it will drop just as dramatically.
But all this might be moot. If all western banks can borrow from the government why should they make loans to each other?
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