Volker limited the money supply, and then the money markets created 21% interest rates on mortgages (this is long before 0% mortages with cash at closing scam that excess money created a crash.
21% payouts on CDs held in banks.... lot of older folks here will remember that. Banks had to PAY US for the money we put in there. Not how they do now and get member Fed Reserve banks to ship them money at 0% and then force us to pay 3 to 4 %.
Because if the money in circulation was left to the real world there would be NO way for these bank hucksters to PRINT electronically all this money. IT IS THEIR FAULT we are where we are.
Suffice to say 21% interest did put a stymie on business productivity, but for savers... people who save their cash— it was fantastic to ladder the instruments. 10K at a time at 21% payout is better than Vegas modest wins.
Banks never received loans from the Fed at 0%. For the first 7 years of Obama's term, they lent trillions to the Fed at 0.25%, while the Fed earned 3% and up.