Comment on Paulson

The bailout is working. Think of the economy before the bailout as a healthy person driving a nice car at a good speed towards a brick wall. Thanks to bailout we didn't hit that wall.Two months ago, nearly every economic indicator was better than today, from unemployment to the stock market, but the banking system headed towards a crash. Economists keep talking about the Ted Spread. That's the different between 3-month Treasuries and 3-month LIBOR, meaning the difference between the interest rate investors charge to banks compared to the rate they charge the U.S. Government.Why is there a difference? Because banks are slightly more likely to default than the government. When the Ted Spread widened from around 1% to close to 5% a month ago, investors were betting on a massive banking collapse of the banking system.It didn't happen. The Ted Spread's back down around 2%. Thank you Mr. Paulson.
— Bendix, New York City