TakeAStepBack
Gold Member
- Mar 29, 2011
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This latest financial crisis was caused by rampant fraud, unregulated derivatives, and massive overleveraging. Every bit of which is still occuring.
The crash had very little to do with the Fed. The Fed's role was keeping interest rates too low for too long. But that is a very minor part in the Big Picture.
Well, I was paying you attention until this.
You do realize that the low interest rates signaled lending power, right? That lending power, coupled with govt. GSEs pushed the credit into places it should have never gone. Without the low interest rates and the expansion of credit to people who should not have attained it, there would have been no bubble to burst in the first place. The federal reserve is the MAIN culprit in the financial crisis of 2008. Without their policy, no boom. No bust.