These are after the fact justifications. He does indeed say that lowering rates to inflate asset prices would be our easiest way out of the situation. He goes

These are after the fact justifications. He does indeed say that lowering rates to inflate asset prices would be our easiest way out of the situation. He goes back only to say that it is unlikely that we will cut rates enough so it porbably won't work (ie this will fail because our attempt to create bubbles will be too half assed to work.) He's pretty clearly serious that lowering rates to encourage investment is our ticket out of the problem.