On March 28, 2011 I wrote a post ("The STLFSI") about the STLFSI (St. Louis Fed’s Financial Stress Index) which is supposed to measure stress in the financial system. For reference purposes, the most recent chart is seen below. This chart was last updated on August 9, incorporating data from December 31,1993 to August 3, 2012 on a weekly basis. The August 3, 2012 value is .215 :
(click on chart to enlarge image)
I post various indicators and indices because I believe they should be carefully monitored. However, as those familiar with this blog are aware, I do not necessarily agree with what they depict or imply.
The Special Note summarizes my overall thoughts about our economic situation
SPX at 1402.80 as this post is written