Matt Stoller rebuts his critics

[MFrohike]

56. Haha, misguided

Two wars exclusively financed by deficit spending relied heavily on low borrowing costs. Greenspan especially held interest rates abnormally low for an extended period which made financing those wars far less expensive than it would have been without his intervention.

Those low interest rates played quite a large role in the subprime crisis or hadn't you heard? A virtually unlimited source of cheap funds with no restrictions attached? When in history HASN'T that resulted in a speculative boom? So, yes, the Federal Reserve has played a large role in aiding the banks in the creation of the crisis and is currently propping up a few of the big ones because they are essentially insolvent. The hope is that they'll grow their way out of their problems, but the most on point scenario, Japan, suggests that that will not happen.