Yield Curve Steepest In History: Is The Meaning Different This Time?

Under normal circumstances with a steep yield curve, banks would be willing to borrow from the Fed at close to zero and lend at prime or higher.

Yet we know that banks are reluctant to lend (more accurately businesses are reluctant to borrow) as mentioned many times, most recently in As Credit Contracts, Keynesian and Monetarist Clowns Snipe at Bernanke.