While short - term funding costs are rising and financial conditions tightening from very loose levels, corporate - credit spreads suggest
no serious economic weakness or financial contagion is stressing the system yet.
Ironically, the selloff of U.S. stocks began a few weeks ago because of
weakness in the Chinese economy, the devaluation of the yuan, and stock market turmoil in the Asian nation, which led to
serious concerns about a global
economic slowdown.