I Know it is Unfashionable to Say, But Credit is a Good Thing
There's a good reason we're not all speaking French now and that's all down to credit. Pilfering the renowned Dutch system of credit the English went on to outproduce the French (with more than double the population and economy) in ship building and consequently rule the waves.
Credit is all about using money to make money or at least it used to be. When it worked. Now credit is being used to pay for all sorts of needless (and often disposable) material items in the consumer crazed world we now live in.
And that's where we've been getting it wrong. Continual prosperity comes from both parties making something out of the loaned resource. When once side is only getting a quick fix and not adding any value to themselves or others then it is only a matter of time before it all catches up to them.
So the moral of the story is we need this rough spell to catch up. Both borrowers and lenders have been playing a silly game which could only have played out this way the past decade or so. A year or two of sorting out exactly who owns what and how much it is really worth is in order. After that we can get onto using the credit system for what it is good for, capitalism, and not this nonsense consumerism that's been poisoning our soul and planet for long enough.