Your daily TED update: 320bp, and falling. I love Sam’s metaphor: not frozen so much as melting. Credit markets, like water, freeze quickly and melt slowly. But if things continue to improve at this clip, Bill Gross’s prediction of Libor at 2.65% in a few weeks could well come true; it was fixed today at 4.06%, down from 4.42% on Friday.

In other words, all that government intervention is working. Just give it a little time. And hope that the big trading losses we’re seeing at places like Citic Pacific and Caisse d’Epargne aren’t mirrored in the hedge-fund world. Because the last thing the world needs right now is a big hedge-fund collapse and liquidation.

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