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I don't really disagree with you, but as Keynes said, in the long-run we are all dead. So juicing the economy via the rates probably delayed the inevitable, but at least it kept things humming for 3-4 more years.

Keynes was an idealist and his thoughts on government interventions into the markets were never intended to be used with such frequency and undisciplined fashion as they are now. I'm sure he would be shocked to see just how far astray the application of his therory has gone. Keynes actually advocated paying back the debt -- something that will never happen. It's crossed the line of no return. The debt can never be paid so we have to keep mortgaging more and more of the future to feel good today. We all may be dead, but our children and their children will not. Which gereration is going to be buying a loaf of bread with a $100 Federal Reserve note?

Richard W.

The debt can never be paid so we have to keep mortgaging more and more of the future to feel good today. Which gereration is going to be buying a loaf of bread with a $100 Federal Reserve note? Yep, we will inflate our way out of this mess. But right now it isn't a bad deal. We are getting all sorts of foreign goods for US Fiat money. I am more worried about the pension and social security problem though than the national debt and the mortgage rate bubble. (although they are interrelated) Too many promises for retirement to too many workers. That and medicare and medicaid expenses the next 20 years will dwarf this mini-bubble IMHO.