"Federal Reserve Chairman Ben S. Bernanke said the central bank’s low interest rates probably didn’t cause the past decade’s housing bubble and that better regulation would have been more effective in limiting the boom."Use of variable rates are more responsible for the housing bubble"... however obvious it always make more impact when coming from the "man of the year 2009" or simply the chairman of the Federal reserve, the entity that sets interest rates in the U.S. .
Increased use of variable-rate and interest-only mortgages, and the “associated decline of underwriting standards,” were more responsible for the bubble, Bernanke said today in a speech at an economics conference in Atlanta."
Maybe The Fed chairman Bernanke should talk to our Banks in Finland and maybe to our governors in "Bank of Finland" or (
Indeed in Finland 95% of mortgage rates are based on variable rates. Knowing that interest rates are hoovering at around 1%, something that has never been witnessed in Europe, could create even bigger distortions in many markets including the housing market.