Notice that even during the "best" case scenario (ie before the panics), the LIBOR spread was still around 250 bps over treasuries!!! This begs the question will we ever get back to past spread levels (50 bps)?
The answer is clearly no. 2001-2007 was the easiest access to credit ever in the history of capitalism and it will never be seen again. All we can hope for is that the companies that genuinely need credit get some. I especially hope that the alternative energy companies get funded.
*Graph courtesy of Wall Street Folley
*Some more info on LIBOR
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