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But that philosophy wouldn't necessarily hold, especially if the country's credit further weakened.
Missed payments can result in a poor credit rating, affecting people applying for credit further down the line.
The weakness fanned speculation that the Bank of Japan, whose policy-making board was meeting today, might be jolted to emulate the United States Federal Reserve and try to help the economy by easing credit further.
Moody's Investors Service said this week that it was considering downgrading Ford's credit further into junk bond status because the automaker was spending an estimated $500 million in cash each month.
While there have been signs that the economy has been slowing in response to the Fed's six interest rate increases in the last year, traders are hesitant to make investment commitments when the Fed may still move to tighten credit further to keep inflation in check.
The next likely phase for the crisis will leak into consumer credit, further straining U.S. households already stretched thin by soaring gas prices and inflation.
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Credit slows further, and growth with it.
Vaughan deserves credit for further alerting readers to this reality.
That makes it all the more ominous that banks are expecting to restrict credit still further.
Recently the consumer prices index has been sinking, putting pressure on the European Central Bank and its president Mario Draghi to ease credit conditions further.
Universal credit will further shape and potentially challenge this evolving relationship but it is not, I would argue, the catalyst for the change.
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