Tuesday, October 28, 2014

Cthulhu's Guide to Interest Rate Risk

The following chart shows the weekly average of the overnight AA asset-backed commercial paper interest rate minus the daily fed funds rate.


Click to enlarge.

The Call of Cthulhu by H. P. Lovecraft

The most merciful thing in the world, I think, is the inability of the human mind to correlate all its contents. We live on a placid island of ignorance in the midst of black seas of infinity, and it was not meant that we should voyage far. The sciences, each straining in its own direction, have hitherto harmed us little; but some day the piecing together of dissociated knowledge will open up such terrifying vistas of reality, and of our frightful position therein, that we shall either go mad from the revelation or flee from the deadly light into the peace and safety of a new dark age.

Theosophists have guessed at the awesome grandeur of the cosmic cycle wherein our world and human race form transient incidents. They have hinted at strange survivals in terms which would freeze the blood if not masked by a bland optimism. But it is not from them that there came the single glimpse of forbidden aeons which chills me when I think of it and maddens me when I dream of it. That glimpse, like all dread glimpses of truth, flashed out from an accidental piecing together of separated things...

Source Data:
St. Louis Fed: Custom Chart

3 comments:

  1. From your link:

    That glimpse, like all dread glimpses of truth, flashed out from an accidental piecing together of separated things

    I accidentally stumbled upon the Fed's true purpose - they now exist to make Cramer and his ilk look good.

    If you dare to look into the abyss, Cramer will be staring back at you.

    What could be more horrifying?

    ReplyDelete
  2. mab,

    What could be more horrifying?

    Eek! He was on CNBC the other day complaining that so many on the Internet call him an idiot. (Only an idiot would even bring it up of course, lol.)

    So on that note, I have but 7 words to say.

    1. Lenny Dykstra
    2. Winners of the New World

    ReplyDelete
  3. mab,

    Apologies for not replying sooner. I was using the Playstation 3 and missed your comment (only get email alerts on my PC).

    ReplyDelete