First, you have calculated risk reporting that the discount rate spread has jumped to near record levels:
This is the spread between high and low quality short term (30 days) commercial paper. Even the bad stuff is supposed to be pretty much a sure thing, and the spread between the two is big, indicating a very high fear level.
It’s worse than when the big sh$@pile started to collapse in August.
It’s worse than when the Twin Towers DID collapse on 911.
People are scared, and getting people UNscared will be a very difficult thing.
Then there is the fact that the Producer Price Index took the biggest one-month jump in 34 years, 3.2% in a month, or 45% a year.
The economists will tell you to look at the core rate, but I live in a non core world, as do you.
Florida says $9B can’t be pulled from fund — OrlandoSentinel.com
Remember when I wrote about a Florida money market fund for local governments that froze its accounts because of a run on the account due to its investments in the big sh#$pile?
They are finally releasing some funds to the local governments, but only ¼ of what was deposited.