The TED Spread Again

Update 17th Sept, 2008: TED Spread shoots further, zooms to 2.17%... this is the highest in the current crisis.... just a tad lower than Oct, 1987.... we could see it shoot past there in the next couple of days
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Update 16th Sept, 2008: TED Spread now shoots upto 1.82%
T-Bill 3 M: 1%
LIBOR US 3M: 2.82%

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Well here we go again. It's fairly evident now that the FED and the US government doesn’t have any further appetite for bailouts!!!.... With Lehman filing for bankruptcy and Merrill being sold clubbed with 'No More Bailouts' the TED spread today shot up to 136 basis points.... higher than the previous months figure.... need I say this is what was expected....

Well it looks like it's going to shoot up further additionally it’s is expected to stay above the 110 basis points mark till at least March'08...

(PS the previous post was drafted much before it was posted….. the post timing however was coincidental with the hara-kiri on Wall Street.)