Measures of Liquidity and Fear Ahead of the jobs data and in front of the House vote on the bailout bill, I want to take a look at two of the markers for fear and liquidity.
These are the ted spread which is a comparison of the 3-month LIBOR and the 3-month T-bill.
The wider the spread, it is an indication of a lack of liquidity in the credit markets.
I didn't get this out before the jobs number.
Jobs lost of 159,000, a decline in employment number for about the ninth month in a row.
Volatiliy Index or VIX: The higher the number, the greater the indication of angst and fear in the market.
The yearly low was 15.
82.
Yesterday's Close: 45.
26 The Ted Spread: The larger the number, the greater the indication of tightness in the credit markets.
The yearly low was a number below 1.
0.
Current Number: 3.
8 We will watch these numbers over the next couple of weeks, particularly after the vote today, to see the effect this bill, if passed, will have on the credit markets.
Is a global, coordinated easing of interest rates in the cards? Vice-Presidential Debate I watched the debate last night, and although I wanted to see Palin do a good job and to seem vice-presidential, I was definitely disappointed.
The Votes Are Counted: And The Bailout Bill Passes The Bailout Bill Passes In The House: Quick Market Update As promised this morning, I wanted to take a look at two of the indicators of fear and liquidity before the bill passed, and after, to see if there are any noticeable differences.
Would the passage in both parts of Congress relieve everyone's concerns, or is it still going to take a while? The VIX: This morning: 45.
26 Now (2:26 PM EST): 43.
17 A declining value on the VIX indicates an easing of concern, although a reading above 40 is still a high number.
The TED Spread: This morning: 3.
8 Now (2:26 PM EST): 3.
84 A slightly higher number that indicates that there is no immediate improvement in this indicator of liquidity.