The Healing Process Is Underway in Financial Markets

 

The recent brightening of the economic and financial landscapes has encouraged some risk-taking, reducing appetites for longer-term Treasuries. - Courtesy of www.flickr.com

The broad range of efforts by the Federal Reserve, combined with the financial stabilization policies enacted by Congress and the Bush and Obama Administrations, now are bearing a lot of fruit. This is reducing obstacles to near-term economic stabilization and recovery.

Progress on this front showed up, first of all, in interbank loan markets here and abroad followed shortly by improvements in commercial paper markets. We?EUR??,,????'???re now seeing substantial shrinkage of quality premiums in corporate bond yields, and the stock market has staged a recovery from the abysmal lows in March. ?EUR??,,????'??? Courtesy of National Association of Home Builders