Also, when the money is abundant, people tend to get some and do silly stuff, since it's so cheap you can afford losing it and starting over again. Which means

Also, when the money is abundant, people tend to get some and do silly stuff, since it's so cheap you can afford losing it and starting over again. Which means people that take risks in risky times actually THINK before they raise 10 million dollars to fund a startup. The lenders (aka VCs) also get a lot more lenient (aka dumb) and invest on stuff that is very unlikely to ever succeed, when money is cheap...