The credit market is experiencing an unprecedented loss of confidence due to the lack of transparency over where exposures lie rather than underlying credit quality problems, Moody's Investors Service President Brian Clarkson said on Thursday.
I'll be repeating this argument often. The central problem in the credit markets right now is concern over what people are actually buying, not whether or not they have enough money. Lowering the cost of money will not change what people think about the market; it will only force people to dump the new money into T-Bills.
Thanks to Calculated Risk for the link.