Dude, Where's My Depression?

Mike Darda notes that the frozen credit markets are pinking up, if only just a bit:

The TED spread has dropped to 148 bps versus 186 a week ago and 217 bps two weeks ago. Similarly, the two-year swap spread has dropped to 79 bps versus 103 bps a week ago and 117 bps two weeks ago. Discount window borrowing from the Fed has tapered off significantly with the decline in funding market spreads (see attachment). While this is all good news, it's important to remember that all of these credit indicators remains far from normal and that borrowing from the Fed's window remains well above what would be seen in a relaxed environment (effectively zero). But change takes place at the margin, and at least we've been moving in the right direction in recent weeks

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