The TED spreads showing signs of disapproval to market gyrations again. Refer to the chart below that depicts TED spread moving upwards correponding to similar hikes in 2009 and 2010 sessions. Its a sign of banks unwillingness to lend to each other at the global level. Also, there is ample evidence to prove that there are chances of Inter bank lending freeze coupled with an increase in default risk (bankruptcy) globally among the banks within the Banking sector. The repurcussions to the other Industrial sectors on account of this cannot be completely ruled out as trivial.
