The Federal Reserve released their minutes from the October 31st meeting this week. In the minutes, the Fed offered investors reassurance that the central bank will be compassionate when it comes to its Dec. 11 decision on interest rates. Until then, there was growing hope that an emergency Fed rate cut could occur since government-sponsored mortgage giant Freddie Mac has been funding concerns. Expectations for an emergency cut are unlikely to go away.

The Fed focused on heightened risks to the growth of the economy, noting that coming quarters would be weak on the back of financial market turmoil, tighter credit conditions, and deeper deterioration of the housing market.

The credit markets are hardly back to normal. They are nearing August panic levels with relatively persistent flight-to-quality trade in Treasury bonds, selloffs in commercial paper markets, corporate bonds, and rising rates on Libor. That means banks are anxious and raising the rate at which they'll lend money to other banks. If it really is August all over again, investors should keep their eye on the Fed's discount window.