The Fed set interest rates low in 2008 in order to provide a stealth bailout to the banks that had lent too much and were sitting on collateral that was less th

The Fed set interest rates low in 2008 in order to provide a stealth bailout to the banks that had lent too much and were sitting on collateral that was less than the money which was owed. The low interest rates raised asset values to the point where they weren't sitting on heavy losses any more.