Whether the credit is private or govt doesn’t make it any more or less real. Each $1 borrowed is another $1 spent, regardless of source.
As I said before, claiming that credit is tight because there’s less of it than there was at the peak of the largest easy money bubble in recorded history is hardly convincing. We are simply returning to normal (in some areas of credit), way looser than normal in housing, and tighter than normal in a few pockets.
