That easy credit provided a lot of jobs. Hence the unemployment numbers. Unemployment is a negative multiplier leading to more defaults, more write downs and more credit contraction. It’s a vicious cycle.

The gov-backed loans for housing really does not add many dollars to the economy because it is paying off another loan in most cases. It’s just keeping the whole system from seizing up.

Businesses credit lines are being hit as well. My friends brother, a dentist that runs his own practice. Had his business line decreased dramatically that he has had for over a decade.