CHART OF THE DAY: Credit May Crunch Again Before Getting Back To Normal

button more charts
button chart prev
button chart next

It would be very unusual if we emerged from a credit crisis with a simple V-shaped recovery. (Or A-shaped if we think in terms of credit spreads)

Going back to the Great Depression, we experienced a few sucker’s rallies before credit markets ultimately normalized. As this chart from Econompic Data shows, while credit spreads have recovered from their recent spike, they may still get worse before getting better.

Get This Delivered To Your Inbox
You can get this dropped in your inbox every afternoon as The Chart Of The Day. It’s simple. It’s convenient. It’s free. All we need is your email address (though we’d love your name and state, too, if you’re willing to share it).  Sign up below!


First Name

Last Name


NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.