AM check: short-term/long-term credit risk;TED spread, US 10-Yea

http://seekingalpha.com/article/217589-sign-of-another-bubble-swap-rates-lower-than-treasuries

The TED spread is the difference of 3-month Libor and 3-month T-bill, which has been essentially 0 recently. It's a measure of perceived short-term credit risk of banks as a sector. For longer term, the corresponding measure is the swap spread over treasuries. So, if you were to believe this, the market is saying TBTFs have the same credit risk as Uncle Sam's in the short-term, and lower in the long term. This is of course absurd. No matter how you feel about TBTFs or US sov credit, the moment Uncle Sam defaults, TBTF is no longer.