Financial Crisis 2008 Explanation needed

I wrote these:

http://eatingpropaganda.blogspot.com/2011/11/panic-of-2008-all-hail-fed.html

http://eatingpropaganda.blogspot.com/2011/07/textbook-economic-propaganda-literally.html

From The Ultimate Beginner meta-thread:

The 2008 crisis

 

For more:

What is the best book written on the current financial crisis and its origins?

 

LandJ:

- On 9:20,  how low interestes rates did cause housing bubble?

 

"The housing bubble could not have arisen without the Federal Reserve. Had people started buying houses at unusually high rates, banks’ loanable funds would have begun to deplete, interest rates would have shot up, and that would have been the end of it. That would have discouraged any additional speculation in real estate. But Alan Greenspan and the Fed could create money out of thin air, thus giving the banks more to lend and driving interest rates down, thereby perpetuating the destructive bubble in housing." -Tom Woods