Ben Bernanke said in a speech over the weekend that low interest rates didn't cause the housing bubble.
Instead he said lack of regulation caused it.
As a voting member of the Federal Reserve, Bernanke rubber-stamped ever Alan Greenspan move on money policy. That includes really cheap rates. Now it is true that a slew of financial innovations in mortgages allowing people to borrow money with little to no principle, to lie about their income and never get called on it, or to buy a house with mortgages payments that only pay interest helped bring about the bubble.
But so did really, really low rates. ARM's don't happen when interest rates are high.
Boy, it's a good thing President Obama has reappointed Ben Bernanke to the Federal Reserve for another term.
I mean, who doesn't want a guy who can't take responsibility for his own mistakes in charge of monetary policy for the U.S.
Silly me - accountability is for teachers, not Federal Reserve Open Market Committee members.