TheStar.com | Business | Can U.S. escape zombie economy's clutch?:
"Banks were lending money and there was almost this excessive euphoria and panic that if you didn't buy a home you would be priced out of the market forever."
Overinflated real estate prices. Easy loans and credit leading to speculation. Financial deregulation of banks that encourages more liquidity. Market chaos as the bubble bursts."
What did the Japanese government do?
"To prime the economy, Japanese lending rates went down as far as 0.1 per cent – effectively zero – but even that did little to help the moribund market.
In a similar vein, the U.S. government has tried to prime the pump by sending out rebates for families and tax breaks for businesses, while the Federal Reserve has lowered the overnight lending rate to ensure more liquidity.
Let's all hope this one is not as bad!