Bank of Canada is taking action on short-term lending:
14 Oct 2008 12:22 EDT DJ Bank Of Canada Injects C$495M Into Overnight Mkt Tue
OTTAWA (Dow Jones)--The Bank of Canada injected C$495 million (US$419.2 million) into the overnight market Tuesday to keep the overnight rate around the 2.50% target.
The Bank has injected additional liquidity into the overnight market every business day since Oct. 2.
The overnight market is one of the shortest lending markets around - as its name implies, it extends until the next business day. Rates in the overnight market are often used as a signal for official monetary policy rates.
The more this goes on, the more ridiculous anyone drawing a parallel between today and the 1930's looks. Back then, there was none of this kind of co-ordinated action to stabilize lending, markets, and ultimately international trade.