In the late 1990s, a combination of factors, which included the Federal Reserve lowering interest rates, created a huge price bubble in Internet stocks.
[. . .]
By 2002, with the economy already limping along, former Federal Reserve Chairman Alan Greenspan and the Fed slashed interest rates to historic lows of near 1 percent to avoid a severe economic downturn.
[. . .]
Rising prices led to a building boom and oversupply of houses, everaccelerating prices meant more money brought smaller returns and, once again, the Fed played a role by raising interest rates.
Arun Gupta, "
Financial Meltdown 101", Alternet, October 13, 2008
