That and too much cheap capital. It was trivial to get money, which encourages businesses that shouldn’t exist.

Turns people in to rent seekers,

Low interest rates combined with strict regulatory regimes that prevent capitalists from building more housing in response to price signals while also making it unappealing to rent to permanent tenants?

I almost wonder if a "proper" capitalism should never see ultra low interest rates for greater than 1-2 years. It destroys consumer saving and savings habits, it encourages rapacious leverage acquisition behavior (which we're seeing in the fucking consumer housing market how nuts is that).

The fed should have some wheel that could introduce random 4% swings every six months that would hopefully disrupt the private equity leveraged buyout schemes, but who am I kidding, it would just lead to some ridiculous speculation/betting on what the next random modifier to the base interest rate is.

Perhaps, rather than offering good interest rates to large companies and hedge funds / private equity, there should be special low interest rates for single house owners, but businesses actually have to pay higher interest rates for commercial ventures.

Of course someone would figure out a scheme to get individuals to overprovision their mortgages and then back-assemble the excess debt with kickbacks to route it to other uses.

There has to be some way to have low interest rates to help out the "little guys" but make big biz and stock market leverage/margin buying pay a higher interest rate. If you have a high interest rate, it just benefits banks and the rich, who are the only people that have "real money", in case anyone actually does have "real money".

Low Interest-->Crony capitalism in a real free market loss would have occurred by the accountable people.

Government imposed low interest rates are the opposite of free market capitalism.