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It could also be argued that there's a time lag with the effects due to borrowed money and consumption keeping the economy going.

It's like saying we entered a major drought. The crops and grass keeps growing for quite a while as the ground is still moist. Then the grass does eventually stop growing but it still takes quite a while for the animals to eat what's already there. Then we take the hay out of the barn to keep things going for a while longer. Only once that's gone are we faced with no choice other than to send the entire herd off to the butchers and it takes even longer for the dams to run out and the irrigation of crops to come to a halt. So the whole thing takes quite some time to play out, agriculture doesn't suddenly stop the moment it stops raining, but if it's not raining the ultimate outcome is inevitable in due course.

I see the economy as broadly similar. If you cut off or reduce a source of income then it takes quite some time for the effects of that to fully materialise. Jobs weren't cut in mining the day after the spot price hit the peak, it took quite a while, and those who did lose their jobs generally wouldn't have defaulted on any debts the very next day. Etc. It all takes quite a while to go through the system.