Quote from: efreeti on July 20, 2014, 04:27:14 AM

Quote from: twiifm on July 20, 2014, 04:08:34 AM

Quote from: boumalo on July 19, 2014, 08:55:56 PM

The real estate bubble has been created by the low interests rates from the FED in 2000s and they blew more air into the bubble in recent years with 0% interest rates which means the crash will be bigger and more painful that it would have been if only they allow it to happen to destroy the bad debt

No it wasn't. It was mainly because of 90s deregulation that led to subprime lending. What you should blame the Fed for his not allowing interest rates to rise when they saw a bubble forming. The low interest helped accelerate the housing bubble, but it didnt cause it.

Also, in case you didn't notice; housing bubbles were a worldwide phenomenon not only USA

Both lending practice and low interest rate contributed to housing bubble.

Yeah thats what I said. But interest is lower now than during bubble. So interest didn't "create" the bubble. And you can't blame the Fed for bubbles in multiple countries

And 0% is a bank rate. Not consumer rate.