Economics For Morons: TED Spread Climbs

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Posted on Oct 27, 2008 @ 04:07PM  
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START SPREADING THE NEWS TED Spread over the last month

We mentioned this last week, but today The Big Money, Slate's so-far crisis-unprepared and fairly useless new money site, goes on to explain the TED spread: "What sounds like second-rate Nutella is actually the difference between the interest rate banks charge each other on three-month loans and the interest rate on three-month U.S. Treasury bills." It is also explained fantastically here on NPR: "The spread measures the difference between the interest rate the U.S. government would give you to borrow money and what banks would give you." There. THE MORE YOU KNOW.

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