Don't Fear The Dow

Manzi says to worry about the TED Spread:

We’ve injected so much debt into the system over the past decade that not only can’t we borrow our way out of the consequences of the real estate bubble popping, but we’re going to have to start paying off a lot of the existing debt in the face of a poor economy. What Paulson and Bernanke are doing is to make this adjustment only painful instead of catastrophic.