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If they didn't realize it was high risk, why were they printing money all along to keep it going?

• deleted 18y ago
  [deleted]
• timr 18y ago
  They weren't. This is a crisis caused by debt, not currency devaluation.
  • rjurney 18y ago
    The causes of the crisis are complex, but home building was driven by cheap money from low interest rates. Had it not been, the bubble would have burst long ago. The fed put the petal to the metal for a long time, and kept it there because they knew housing was saving us from recession.
    • jibiki 18y ago
      Funny, I always thought the expression was "pedal to the metal", guess I've never seen it written... To be fair, low interest rates were meant to encourage investment across the board, not just in houses. Your point, of course, is still totally valid.
      • rjurney 18y ago
        It is pedal to the metal. You got me grammar man! ;)