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To: dalereed
RE :”Interest rates didn’t cause the housing bubble

When we talk about low interest rates we are talking about creating new money. This causes many problems in the long run but in the short run it is done to create a party. Everyone loves the party(but not the hangover) , everyone feels richer.

More people have more money, but there is not more things to go along with that new money. Also it deters savings and promotes speculation and debt.

The opposite argument than yours can be made too, that those requirements for loans were eased BECAUSE the house values were going up, because of the bubble they looked like safe loans. Plus we were told by Bush and even talk radio show hosts (and most others) that the bubble was real, that it was real economic growth. So easy requirements and temporary cheap money fed each other and the bubble

51 posted on 05/18/2009 5:23:43 AM PDT by sickoflibs (Obama /Pelosi/Bush Theme : "A dollar borrowed or printed is a dollar earned!")
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To: sickoflibs

You’re one sick son of a bitch!


52 posted on 05/18/2009 5:41:22 AM PDT by dalereed
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