This definitely looks like a credit crunch. Household secured lending has collapsed.
Back in the good old days, bank lending to households was increasing annually by at least 8 percent. There were moments when that growth rate hit over 16 percent.
Imagine the plight of those poor loan officers who processed these huge increases in lending. They must have been working day and night, filling out those forms, and disbursing all that cash to their grateful customers.
With lending surging at such rates, would anyone be shocked to find out that loan officers didn't have to time to fully assess the creditworthiness of customers. Most of the decision making was done by computer programs who gave credit scores to potential borrowers.
Hard pressed loan officers, coupled with computerized decision making, doesn't sound like a reliable basis for adequate risk management. Is it any wonder that after ten years of this nonsense, we end up with a massive banking crisis?