The Federal Reserve's failure to allow for the free market to determine interest rates by keeping them artificially low led to the economic collapse of 2008. People love to blame "banks" because they were the provider of those risky investments. What people fail to understand is that the banks only made those risky investments because the Federal Reserve kept interest rates artificially low, which made it easier to make risky investments than the free market would have allowed.
This very concept was argued by Peter Schiff, CEO of EuroPacific Capital in 2006-2007 before the Great Recession in 2008, when the Federal Reserve set artificially low interest rates which led to the risky investments in the housing market. Of course, nobody took these claims seriously, and we ended up in the mess we did in 2008.
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