This is true, and the hope is that more and more people will come to accept those realities.
What, for keeping interest rates low because inflation and unemployment was were under control? We can also blame what Fannie and Freddie did on the fact that the sun made life possible on the earth.
Those things appeared to be under control because we were in the boom phase. If credit hadn't been so cheap then banks couldn't have made all of those risky loans that they made, and who made credit cheap? The Fed. The market should be setting interest rates, not a central planner.
Dear mr Mises.
The banks didnt care about wether the money was cheap or not. They didnt care if the lendee paid the loan. They sold interest only loans to anyone who passed the "mirror test" and then repackaged those loans off into securities and then SOLD them.
Why do you people keep making up crap about what happened?
THey sold then you silly git. They made money off them and then fucked the entire world economy.
You know why they did that?
To make money.
They did it because they could.
They did it because the regulations were lifted on them acting as securities brokers.
Man you people are propganda thick in the membrains
please tell us why you seem to blame the banks rather than Fanny Freddie and the Fed? Thanks