[fintstone]

Raising debt by artificially keeping the interest rates near zero for 8 years was no more a good idea than raising too much, too fast to try to "pay it back". In both cases, the wrong people have to share too much of the load too fast...which damages one part of the fragile economy at the expense of another...ultimately creating more debt than you gain by the higher or lower rates. The Fed just miscalculated and got a little ahead of itself. "Borrowing" to give money to one group of taxpayers...and later expecting to get the money back from another group...or even the same group is simply too much intervention Wealth redistribution never works like the folks doing it expect. Raising rates is much like raising the rents in your rental. Even if you are below market, if you raise them too fast, expect your tenants to go elsewhere (even if they are still getting a great deal). The month that you go unrented to get the extra $100 on the $1000 rent will take wear or more to recoup (or worse as you usually have marketing costs).

The increase was so much so fast that people were starting to lose homes in droves again to foreclosure in some areas.