If you look at the american economy, they reduce the interest rate from 5.25% pa. to 2% and that boomed the economy. Mean that people could borrow more money to spend. Suddenly in all wisdom of inflation, the fed moved the interst rate from 2% to 5.5%. Literally making all the overleveraged people to incapable of paying loan leading foreclosure and distress sell.

during the distress sell the interest rate are high and nobody had money to buy and too many property on the market forced the prices to crash.\

When the property prices crashed the bank’s looked upon the cds writer for money and they had also overleveraged which lead to the collapse of the empires.

In hindsite, fed could have allowed the inflation to continue rather than getting into this cascading mess.

I would not know why nobody questions the era of consumerism by leveraging. Bank have to increase the margin of the loaner and the interest /installments to his income number

That will lead to paced growth rather than a fiz.