[quote=ctr70]It’s amazing to me that everyone criticized & demonized Greenspan so intensely for keeping rates so low for so long and playing such a big part in the housing bubble, yet Bernake is doing the exact same thing now. No way prices would be rising if 30 yr fixed rates were at a long term average of 6-8%. With a 3.5% rate right now, they are going to have to stay low for a long, long time for prices to keep rising and not fall. Or we would need incomes to start rising at a healthy clip to accompany a rate rise & house prices to not fall.
I mean freaking 3.5% 30 yr fixed. This is not even close to anything anyone has seen since the 19th century![/quote]
I think that quite a few of us have criticized and demonized Bernanke for suppressing interest rates. He is killing savers and fixed-income earners…and blowing more bubbles that will have devastating consequences (IMHO). I think the bond bubble that is a continuation of the credit bubble that caused all the problems in ~2008, when/if it bursts, is going to make 2008 look like a non-event, especially when one considers what it will do to the govt’s debt burden.
