Did the Federal Reserve Cause the Housing Bubble and the Subsequent Financial Crisis?
Some economists think that the Fed played a role:
( Recall the application of the supply and demand for loanable funds from Chapter 8 relates to this point of view)
See here ( Wall Street Journal) here ( WSJ)
and here ( Ludwig von Mises Institute)
Alan Greenspan, Former Federal Reserve Chairman doesn't think so:
see here ( Wall Street Journal)
For a visual explanation see the following video: