We survived the internet bubble burst but we cant survive 1/2 of 1 percent of mortgage loans going bust? Thats a bunch of crapola, put forth by a bunch of scared hedge fund nmanagers. They built their bed, now they have to sleep in it..
One other thing, you prop up these bad loans and that takes money away from other business opportunites . Just because you CAN inflate the money supply doesent mean you should.
It’s not the half of one percent of bad loans creating the problem. It’s the reaction to them, and the resulting loss of liquidity.