How Have the Credit Markets Fared Since August 17?

The excerpts below are from the daily article done by Northern Trust concerning various economic issues. This article discusses on the credit markets have fared since the August 17 intervention by various central banks. The article indicates that the markets are better, but not back to what they were before the intervention. The original article gives a very readable summary of the markets with some excellent charts. Also the site is worth looking over every day, their commentary is usually very good and always rational.

It is the ninth market day since the Fed cut the discount rate on August 17 to stabilize financial markets. The effective federal funds rate is trading very close to the target rate of 5.25%

Other market spreads indicate a noticeably less persuasive picture of stability in financial markets. The spread between 3-month Eurodollars and 3-month U. S. Treasury bill narrowed to 107 basis points on August 27 from a recent high of 195 basis points on August 22, but the spread as of this writing has widened to 166 basis points. . . . . .