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Washington doesn't mind asset bubbles because Washington is short sighted. Asset bubbles create the illusion of economic growth and prosperity, while the bubble remains intact. So they do what they can do to keep the bubble intact.
This, for example, came in things such as Alan Greenspan's audacious lie, during the peak of the housing bubble, that "There is no housing bubble."
It takes the form even today, as the government is doing everything it can to prop up the tattered remains of the housing bubble, by trying to prevent housing from returning to its true value, and trying to keep the prices as artificially high as possible. The govt still refuses to acknowledge that the housing prices were fake.
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