“IMHO, the housing bubble was planned from the very beginning.”
Yes, and this explains a lot. The FED and regulators have been widely criticized because they apparently MISSED the housing bubble. No, they didn’t miss it they created it. What they got wrong IMHO is they thought they could create a bubble and then control it with “measured” monetary policy. In the worst case, they figured, they just had to use “extreme” monetary policy to clean up the aftermath if things went bad. The result was perhaps the most costly failed experiment in monetary policy this country has ever witnessed.
