Economics For Morons: TED Spread Climbs

Oct. 27 2008, Published 7:07 a.m. ET

Link to FacebookShare to TwitterShare to Email

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.

Article continues below advertisement


© Copyright 2022 Radar Media Group LLC. RADAR and RADARONLINE are registered trademarks. All rights reserved. Registration on or use of this site constitutes acceptance of our Terms of Service, Privacy Policy and Cookies Policy. People may receive compensation for some links to products and services. Offers may be subject to change without notice.