The problem is that every time they “solve” one problem they create another one. The real estate bubble started with the tech stock melt-down and the desire of policy makers to inject liquidity into the economy. They brought interest rates down…which led to many cheap mortgage dollars chasing a relatively small pool of truly eligible borrowers. You know the rest.
Who knows what the next asset class is that will get the bubble treatment?
Meanwhile, California faces a fiscal crisis…even as our State economy is headed down.