Monday, November 3, 2008

More signs the worst has passed


The VIX index is declining (though still abnormally high), which means the equity market is no longer in the grips of catastrophic panic. The TED spread has dropped by half from its peak on Oct. 10th (which date marked the low ebb for the equity market), as investors' crazed demands for safety has subsided. These are very reassuring indicators.

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