– November 24, 2010 Reading Time: < 1 minute

“In 2003, the Federal Reserve Bank lowered the Fed funds rate down to 1.25%. This was the lowest level that the Fed funds rate had been since 1954. Again, the low interest rate gave birth to the housing and credit boom. This rally or boom cycle lasted just 5 years and as we know lead to the greatest recession that the country has ever seen since the Great Depression.” Read more.

“Bust Cycles and the Fed”

Nicholas Santiago
San Francisco Chronicle, November 23, 2010.

Image by renjith krishnan / FreeDigitalPhotos.net.

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