The road from subprime lending to outright fraud is paved with low interest rates. Subprime has two necessary conditions - mortgage introductions from naive borrowers, and excess demand for apparently low risk high yielding assets. Low base rates are essential to facilitate both.
The idea that the whole saga of subprime mortgage securitisation was a phenomenon independent of interest rates is fanciful.
Exactly, that was the purpose of low interst rates, riggind the gilt/treasury yields, and that of QE.
TO HERD INVESTMENT INTO RISKIER ASSSETS.
Even if they didn;t pass the smeell test insurance comapnies, pensions, investmonet co's bought CDO's, MBS and the other trash because they had no other choice to have any chance of funds keeping up with inflation or providing an actul investment return.