Credit is way too loose -- Austrian economics coming back

So, to avoid a serious depression, jack interest rates to curtail even more debt failures than will occur with all those leveraged money losers out there? But how can a choked money supply be okay for profitable businesses? I think we've painted ourselves into a corner. They had better get this right.
I didn't realize there was any dichotomy or distinction between a credit view and a money supply view of the Depression.