TED Spread Spreading
Back to old "TED."
It's basically been grinding higher. Until now, the spread hasn't really approached levels we saw prior to 2008, when it signaled the coming liquidity crisis. But it's starting to rise now and its at its highest since the market sell-off of April-May 2010.
I'm not focusing now on whether its signalling a stock market crash, since we already had that. I'm thinking now that banks are becoming more cautious in lending to one another - a sign that another liquidity crisis approaches.
It's basically been grinding higher. Until now, the spread hasn't really approached levels we saw prior to 2008, when it signaled the coming liquidity crisis. But it's starting to rise now and its at its highest since the market sell-off of April-May 2010.
I'm not focusing now on whether its signalling a stock market crash, since we already had that. I'm thinking now that banks are becoming more cautious in lending to one another - a sign that another liquidity crisis approaches.
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