Read in wsj that the spread between LIBOR and 3 month us treasury spiked recently to 0.4. The link tells us what TED means. Higher this difference, more trouble commercial banks are in.
For perspective TED was at 5 in early 2008.
So keep an eye on TED. He has correctly predicted 9 out of the last 2 recessions.
Thank you, TED.
Re: TED Spread as an indicator of trouble ahead
You hang in there TED. One of these days, you will be recognized and duly rewarded.
Re: TED Spread as an indicator of trouble ahead
Hey TED, not sure if this is directly related - but last week's WSJ stated that European junk bonds have been getting attention recently. If LIBOR rate is a proxy for bond price in general - that is higher the LIBOR, greater the risk - then it seems TED, that you did provide a glimpse of things to come.
Told you TED, hold your head high. Pay no attention to those who pay you no attention .