Steve Horwitz echoes my thoughts (expressed in a post yesterday):
…excessive supplies of credit enabled mortgage lenders to give out high loan-to-value mortgages right and left, leading to delinquencies and foreclosures, supposedly leading to a weakening economy and a falling stock market, which the Fed is now attempting to “cure” by cutting rates by 75 basis points, which will inject even more funds into the economy.
The Everyday Economist 
Pingback: Problem rozwiązania problemu - (nie)główny ekonomista - cykl koniunkturalny, FED, kryzys gospodarczy USA, ekonomia, gospodarka, mikroekonomia, makroekonomia