Some of the banking industry's first responses won't be immediately visible to most Americans, but they are critical to the proper functioning of the U.S. financial system.

For instance, a drop in a crucial short-term lending rate called the London Interbank Offered Rate, or Libor, would be a telltale sign that banks are less anxious about extending credit to each other - and the rest of us.

In the short term, there are several economic reports to watch for clues about whether credit conditions are improving:

1. The Federal Reserve's quarterly senior loan officers' survey, which tracks banks' appetite to lend; Every quarter the Federal Reserve System surveys a panel of senior loan officers at major banks across the nation. The results of this survey have been found in previous studies to provide useful information in predicting gross domestic product. This paper extends that work, finding that sector-specific survey results are relevant for predicting real activity in those sectors but, strangely, that the informative power of the survey results only marginally extend to various measures of performance in the banking sector.  May 2008 Survey

2. The Fed's weekly report on emergency loans provided to banks and investment firms

3. Freddie Mac's weekly report on mortgage rates

4. The Mortgage Bankers Association's quarterly survey of home foreclosures and delinquencies.