From The Wall Street Journal:
“The Federal Reserve had a role in inflating the housing bubble, but it wasn’t low interest rates in the U.S. that fueled speculation in housing around the globe, Fed Chairman Ben Bernanke said Sunday.
Rather, it was lax supervision of toxic mortgages by the Fed and other bank regulators — along with excessive flows of capital around the globe — that inflated the bubble, setting up the world economy for what may have been the worst economic crisis in modern history, Bernanke said.”
DHW asks: Do you think low interest rates spurred the housing bubble?