What caused the crisis?
Writing in the Wall Street Journal, Alan Greenspan, who was at the helm of the Fed during the relevant time period, tells us (surprise!) it wasn’t the Fed’s fault. Greenspan notes that short-term interest rates, which the Fed controls, are only loosely correlated with long-term interest rates, which are most relevant to real estate investing (think, 30-year mortgages). Therefore, the Fed (read: Greenspan) can’t be to blame.