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This overlooks that in part the desire to stimulate a housing bubble came on the back of the failing dotcom industry and worries about the long term viability of that particular bubble.
Also there are several other macro-economic trends to consider, such as the sheer massive amounts of money being traded internationally by such financial institutes, which has massively dwarfed the US federal reserve (and thus the ability to spend ones way out of a recession) for much longer than a decade. There also trends concerning savings and overall (if managed) decline in the dollar's worth since the 1980s.
I mean, its not bad for a medium range view. But there is a lot more feeding into this that could be discussed, but isn't. I'd really like to see a competent economist take a swing at something like this, because I remember discussing the above trends back in 2005 and being worried about the long term implications they entailed. But you know, boom and bust was buried forever back then, and so on and so forth.
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