Admin

Ted Spread A Warning or Just Guff?

No fear mongering here but the the Ted spread [spread between the 3mos Libor and 3mos Treasury bill] has risen as of late and I'm keeping an eye on the ADX as a signal of a possible bullish move in Ted which could prove bearish for equities. The Ted spread is basically [to me] like the VIX. If banks see cause for concern over the next 3 mos., they would rather pay the higher premium for the Libor than 3mos UST. A simplist view I know but for more on understanding the Ted spread visit the Professors at Econobrower @ http://www.econbrowser.com/archives/2008/09/understanding_t.html You can also view this article by Bloomberg from 2008 on the Ted Spread and the markets opinion of the indicator at the time. http://bloom.bg/esNzVe

Read More, Comment and Share......

E-mail me when people leave their comments –

You need to be a member of StockBuz to add comments!

Join StockBuz

Pardon our dust as this page is undergoing a facelift.  Please report any difficulties you may experience during this phase.  Contact us

***********

You're welcome to add new charts and photos using the "Add" button found at the top/right.

  • Be certain to give each a TITLE
  • Select a category that best fits
  • Select more than one category by holding down the "CTRL" key when selecting the second or third category.
  • Add "tags" which best describe your chart so it can be located by search engines. (ex. Apple stock, AAPL, long trade)
  • Since we don't charge for our trade ideas, please pay with a