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Old habits are hard to break. When the NASDAQ tech-bubble burst, the U.S. government and Federal Reserve Chairman “Bubbles” Greenspan created an even bigger asset-bubble to replace it (the U.S. housing bubble). It was characterized by a 1% “benchmark” interest rate, ridiculously lax lending standards, rampant fraud – and non-existent oversight.
By refusing to allow its economy to purge itself of bad debt and excessive credit, the U.S. government created a much more damaging bubble – aggravated by Wall Street's multi-trillion dollar, global Ponzi-scheme.
With the U.S. housing market now experiencing its worst collapse in history as the aftermath of that bubble, and with no “bottom” in sight, the U.S. government is once again trying to take the easy way out – this time by trying to re-inflate the same bubble which has just burst.
This time, the Fed's benchmark interest rate is at 0%. This time, it's the U.S. government itself which has lowered the bar with its lending standards. This time there is even more mortgage-fraud (up 23% from last year) – and there is still no oversight.