Heart of the Problem

OK, I'll preface this by saying "I'm not an economist," but here's a thought, when Henry Paulson says things like:

"I have always said that at the heart of the problem is the housing correction. And until the biggest part of the price decline in houses is behind us, we will have stresses in the financial markets and in the economy."

Does it occur to anyone that the heart of the problem might not be the fact that we've overextended ourselves?

That just maybe, $2.6 trillion in consumer credit and the easy lending that helps obscure the fact that real incomes have fallen for the working class for years, is at the heart of the problem. That the collapse has nothing to do with decades of spending beyond our means, and that maybe we should prepare ourselves to lower our standard a living, if only a bit?

Anyway... I digress, let's get back to media matters and other topics... How do you like your H3?