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As a result of the tech bubble popping greenspan lowered interest rates for 10 years to almost 0, effectively meaning banks could lend any amount of money, but
by zpeti 5y ago
As a result of the tech bubble popping greenspan lowered interest rates for 10 years to almost 0, effectively meaning banks could lend any amount of money, but also couldn't earn any money from actual interest and needed to find all sorts of ways to make a profit, e.g. repacking and selling bad loans to other banks and pensions.
I'd argue if we let the tech bubble pop properly, have a recession for 2-3 years, but keep interest rates at higher rates, it would have preventing a housing bubble.
And that's down to greenspan, and government intervention, not the market.