Commercial Paper Market Still Shrinking

The WSJ has a piece showing that the Commercial Paper market is still shrinking. See the chart below.

This view contrasts with that shared in a post on Krugman's blog that suggests that the money markets are unfreezing.
Scott commenting on Kruman's post writes "As recently as Friday, I heard three different people in the industry describe the LIBOR rate as “notional” or “fictional”, and state that everyone was still largely hoarding cash, even among the banks. The transactions are apparently not happening at a sufficient volume to clear the market, regardless of the offered rate. I’ll believe that the markets are thawing when I hear the ice crack. "
Seems to me that Scott heard right.
The big problem in the money market for the US seems to be the weak economy. WSJ states "What’s worrisome, though, is that the decline in short-term commercial paper issuance may not reflect as much on the clogged money markets as it does on economic weakness. "