Record Interest Rate Spreads

Will somebody please tell Chari, Christiano, and Kehoe http://www.minneapolisfed.org/research/WP/WP666.pdf that there is too a credit crunch?

Calculated Risk:

Calculated Risk: Record Spreads between 30 Year Corporate and Treasury Yields: Here is another measure of credit stress... the spread between 30 year Moody's Aaa and Baa rated bonds and the 30 year treasury. The Moody's data is from the St. Louis Fed.... There are periods when the spread increases because of concerns of higher [long-term corporate] default rates (like in the severe recession of the early '80s), but the recent spread is unprecedented.