Monday, October 13, 2008

Don't Watch the Dow

Brandon Fuller, writing on The Big Money today states the case very well as to why watching the DOW is no way to judge our current economic crisis. He points out that a much better indicator of where we are is the TED Spread (the spread between the three month T Bill rate and the three month LIBOR which is an average of interest rates offered in the London interbank market for 3-month dollar-denominated loans)

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