Wednesday, October 29, 2008

Big Money

After my slight insult to a couple of my readers in my previous post I come back and try and be helpful as I "bring the knowledge".

I read this article which was part of the Slate Big Money series that discusses how what one should be paying attention to with the "financial crisis" is the TED Spread. Now I'm not going to go into much detail about TED except to say it is the rate that banks lend to each other and how its fluctuations are the major reason so many people are hesitant about the market (plus bad investments, inflated stock prices, etc.).

What I like best about the online article is the links it provides for tracking both the TED rate or spread as they seem to call it and the Case-Shiller index which tracks home prices.

Oh, and a plug for the pic I used on this post to help show how the stock market is not in that horrible of a place. 20 years ago we were NO WHERE NEAR where we are now, now granted people want to make money on their investment and became expectant but long term we are still up.

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