They did this on purpose?
I just read this on big picture:
Pimco’s Fed Focus by Paul McCulley for July 2001
Paul McCulley: Show A Little Passion, Baby
The average American also owns a home. In fact, the home ownership rate in America is at a record high 68%. And while most of those homes are levered, there is room to lever them even more, from both a balance sheet and an income statement perspective, as shown in Figure 4. Most important, perhaps, valuation of homes - the price of a home divided by the shelter services that it provides - is secularly cheap, as shown in Figure 1 on the cover. There is room for the Fed to create a bubble in housing prices, if necessary, to sustain American hedonism. And I think the Fed has the will to do so, even though political correctness would demand that Mr. Greenspan deny any such thing (just like he denied belatedly attacking the NASDAQ bubble). So, while I may think Washington needs to put more Keynesian proof in the policy beverage it is serving, there is no question that Washington is pouring from the right decanter.
Corporate psychopaths, that's the only explanation that explains how they sleep at night.
Seriously, I saw a documentary that did brain scans that compared corporate executives to psychopaths and the same areas of the brain are under developed.
Paul McCulley - Debt King Slave Master.
My other blog, http://makingsenseofmyworld.blogspot.com/, has my opinions on this:
Six degrees of leverage
The glory of ignorance
Low interest rates - as destructive as ursury.
The glory of ignorance was written over two years ago, the low interest rates post a year and a half ago, and six degrees of leverage in February 08.
I am so disgusted that this was so done on purpose.