The FIRE economy based on transaction and debt volume/velocity: gone, over, toast. Housing market based on speculative flipping and one-person households: over, gone, toast. Loose lending by delusional lenders to risky, over-indebted borrowers: gone, over, toast. Borrowing based on rising real estate values: gone, over, toast.
The notion that we "need" more of anything: gone, over, toast. The idea that you can force lenders to lend to uncreditworthy borrowers: gone, over, toast. The idea you can force people drowning in debt to borrow more: gone, over, toast.
The FIRE economy is Financial, Insurance, Real Estate. The point about Debt volume/velocity is well taken. Debt volume is going down at the consumer/hedge fund level and velocity is going WAY down (flipping). Already the investment banks who were living off fees from "volumeXvelocity" disappeared over night. Ugh.