Speaking of the TED spread, from NFTRH9 dated November 22, 2008:TED Spread & LIBOR Still With the Program [TED & LIBOR 1 Mo. charts omitted]
Again, these are not the kind of charts I want to be posting on NFTRH. What I want to be doing is looking at markets, stocks, bonds and currencies in a relatively stable environment. But since the NFTRH launch, I have not gotten what I want. These macro indicators, along with the above money supply data are a necessary evil for the time being because they help us navigate a historically difficult period. They help us avoid becoming just another sheep to the slaughter.
These charts rising impulsively are the last things economists want to see. As it turned out, the pullback in credit and risk nearly ground the system to a halt. With the massive globally coordinated efforts on the part of policymakers to savage their currencies, we indeed have more indication that the panic is easing. But of course the cost will one day be extracted in the form of a more intense inflation problem. But for right now, all anyone cares about is refuge from the deflation impulse now in progress.
