The bursting of bubbles causes credit contraction, the forced liquidation of assets, deflation and wealth destruction that may reach catastrophic proportions.

泡沫破裂导致可能达到灾难水平的信贷紧缩、资产清算、通缩以及财富缩水。

youdao

And yet, although tumbling house prices and a sharp credit contraction could indeed pull the economy into a noxious downward spiral, the evidence of such an economic disaster is, as yet, slim.

虽然翻着跟斗一路下跌的房价和骤然紧缩的房价的确把经济拉下马，进入一个不良的循环，但是就此断言经济灾难还是没有证据的空谈。

youdao

We have massive contraction of credit formation.

我们对信用形成大规模收缩。

youdao

We have massive contraction of credit formation.

我们对信用形成大规模收缩。

斯坦福公开课 - 经济学课程节选

As the graph below depicts, commercial and industrial loans have been declining since late 2008 and only recently have we seen a leveling off of the credit contraction.

FORBES: Double-Dip Yes, But Bullish Just The Same

The credit contraction these losses will spawn has hardly started.

ECONOMIST: Credit crunch

And yet, although tumbling house prices and a sharp credit contraction could indeed pull the economy into a noxious downward spiral, the evidence of such an economic disaster is, as yet, slim.

ECONOMIST: America's economy