She Hasn't Sung Yet

Despite the unbelievable rise in the Dow, the TED spread was unchanged today. At 4.57 it is still very close to its historic high; long term it has averaged .3. The spread measures the difference between the rates on 3 month Treasuries and the 3 month LIBOR (London InterBank Rate), the amount banks charge each other for loans. Until this gets back down to 1 or so, look for difficult credit times.