LIBOR Rate is coming down

[tripods68]

Down from 4.9% in October to 3.0%. Good news for the bank to bank lending to free up credit markets again.

[Broken Arrow]

Yes. A lot of people have been staring at it since the bailout, and fortunately, it's showing signs of improvement. While the worst might be behind us, we are far from clear, and more government intervention may be necessary in order to get our economy back on track....

[banditfist]

TED spread is getting worse. No information is available as to how much money is being lent between the banks.

[noppenbd]

TED spread is getting worse. No information is available as to how much money is being lent between the banks.

Huh? Bloomberg shows the TED at close to 2%, which is high, but at least within historical norms.

[banditfist]

Huh? Bloomberg shows the TED at close to 2%, which is high, but at least within historical norms.

I just read another report, and you are correct. TED spread is just over 2%. It has been coming down.

[tripods68]

Isn't the Libor Rate - Fed fund rate = Spread ???

[noppenbd]

Isn't the Libor Rate - Fed fund rate = Spread ???

Not exactly. The TED is 3-mo LIBOR minus 3-mo T-Bill.