How to capitalize on a war--TED SPREAD

[Paul Cote <cote@xxxxxxxx>]

As a former subscriber to the Hume Supertrader's Almanac, I remember
that there was an issue on the TED SPREAD.  The Ted Spread is a Long T
BILL and Short Eurodollar spread.  It is based on the fact that T Bills
always have less risk than Eurodollars.  When the spread gets thin, one
buys the spread in hopes it will widen and a profit will be earned,
earned by the Eurodollar going down in relation to the T Bill.  During a
War scenario, the overnight risk in US Dollars held in overseas european
banks rises, and the Eurodollar should go down to reflect this.  I don't
know if this will work for a new gulf war and have not looked at what
the TED SPREAD did in the last war.  Any comments greatly appreciated.