[Canadian]

There is no need for interest rate to go up in order to have a credit crunch. Right now we have ridiculously low interest rates (well below real inflation) and we have severe credit contraction already. I think that the whole credit crunch thing will be good for the economy as it will lower artificially inflated bubble like the Canadian housing bubble and will give more power to savers and people that actually make money, versus people who buy everything using debt.