Authored by Charles Hugh Smith via OfTwoMinds blog,This is why a recession will catalyze a collapse of the credit-asset bubble-dependent economy down to its foundations. recession, and return the economy to expansion. Ultimately, assets generate income from either 1) issuing more debt, 2) investing more in risk assets or 3) consumer spending. In the real world, risk is rising inexorably due to excessive debt, interest payments, leverage and speculation. This is why a recession will catalyze a collapse of the credit-asset bubble-dependent economy down to its foundations.