It’s not an either/or situation. Friedman was very critical of the Fed’s inaction in the 1920s stock market bubble, AND very critical of them for tightening credit in the 1930s, which was absolutely the wrong policy at the wrong time.
I wish more people would realize is that if speculative demand causes the prices of certain things to substantially exceed the value of any uses to which they could actually be put, such a bubble is guaranteed to burst before the value of those things can be extracted; the sooner that happens, the smaller the losses that will be realized when it does. The term "market correction", properly applied, is not a euphemism. Tightening credit earlier in the 1920's would have collapsed the market sooner, but that would have been a good thing.
With regard to today's situation, I think the problem isn't that credit is too tight or too lose, but rather with that there's no confidence that those in power won't arbitrarily change the rules to the detriment of anyone who ventures forth into the marketplace without the proper political connections.