From time to time since last summer, Doomers have discussed the thesis, "is what we are seeing more of a credit bubble than a housing bubble?". In fact Jan-Martin recently contributed a link [1] on the issue, and just yesterday he pointed out this itulip credit bubble graph.
Doom reader K is convinced the credit bubble exists, that it is in the process of reversing, and that credit contraction is the key to understanding the US housing market and the larger global economy. In the last couple of days he has discovered a report that he feels supports his thesis. He sent it to Doom just in time for Op-Ed Friday (emphasis in the original).
All concerns, including those with respect to housing, are subordinated to the ongoing credit contraction. Here is another piece [2] of the latest news. Don’t pay attention to anything else: PAY ATTENTION TO THE CREDIT CONTRACTION. In the end, it is the credit contraction which will sink the economy–mark my words.
