The story of the noose that choked credit

Banks and corporations have been going through their own credit crunch which is why risk aversiveness has been an underlying theme in this recessionary charade.

Commercial Banks heavily rely on nontransaction deposits for funding.  These include small and large time deposits:

Repurchase agreements are an important source of bank funds and the most important lenders are corporations which means corporations are lacking idle funds and taking on a more defensive position:

Also Securitization made credit available on a mass scale:

Commercial Paper market had also become a major source of corporate funds:

We are not going to see any growth whatsoever unless funds get allocated from savers to borrowers, and by the looks of it our situation is morbid at best. Show me the money!