by Lee Stranahan
Everyone on TV always talks about the Dow and stock market but the DJIA isn't really a great indicator of how the financial markets are doing. If you want to know how the financial sector is doing, one good indicator is the TED spread.
Paul Krugman has explained the TED Spread as....
the difference between the interest rate on three-month Treasury bills and three-month LIBOR, the rate banks charge on loans to each other. The TED spread is an indication of lack of trust in financial markets...
So - click this link to see the TED Spread chart for the last year.
Higher is worse; in other words, less confidence in the financial markets. See that HUGE freaking spike starting around September?.That's what a picture of the Financial Crisis looks like. If you check the period since Barack Obama was elected or sworn in, it's lower and fairly stable.