[FastCoyote]

These people are idiots. The subprime crisis was BECAUSE of artificially low interest rates. Lower rates will do absolutely nothing. The only thing that could work would be tax cuts and spending cuts coupled with hands off the banks till they clean up their own mess.

[RSmithOpt]

You are spot on with your statements. Tight credit ensures private and public entities to be more efficient and to 'do without' in some cases. It simply forces companies to eliminate waste.

Reducing the size of our Nanny government and operating in the black with debt pay down is the ticket to reviving the economy.

Increase tax write offs of capital equipment investments and research while at the same time reducing the corporate taxes....then watch things take off and the standard of living increase.

[rb22982]

Subprime had nothing to do with artificially low interest rates. Low interest rates given to people who put money down and have at least decent credit allows for more capital to be put back into the economy besides their mortgage. The subprime crap happened because anyone with a SSN could get a mortgage with 0% (and sometimes with negative 1-3% down with closing costs wrapped in). If people needed 10% down and at least a 620 credit score to get a mortgage, the subprime fiasco that is currently happening would never have happened even if mortgages rates were 1-2%.