Stage One of the Five Stages of Collapse is Financial Collapse. Take a look at the charts in Really Scary Fed Charts: NOV, US Bankrupt? It would appear that stage one is well under way.
It is critically important to arrest the collapse at Stage One. A fire break is required to halt the contagion. Stage Two is Commercial Collapse. You do not want to get to Stage Two, because once it manifests in the real economy it becomes almost impossible to halt and reverse. The US and the world are dangerously close to commercial collapse as evidenced by the complete and utter destruction of the Baltic Dry Shipping Index.
The Five Stages of Collapse by Dmitry Orlov (Click on the link for the original article including Power Point slides.)
A few thoughts on credit
35 minutes ago