Some of the benefactors of current monetary policy include very weak or damaged industries and governments that are able to use “cheap” funds to prolong the day of reckoning for decades of financial neglect and overspending.
For the housing market and those homeowners now underwater, the cheap interest rates promote temporary and artificially higher home prices until monetary easing is halted.
Decisions are being made today due to significantly lower cost of funds that will not appear to be such great decisions in the long run.
The value of allowing an economy to correct for excesses is that it encourages people not to engage in that behavior again. When irresponsible behavior is rewarded by irresponsible actions on the part of the Federal Reserve, the stage is set for the next economic calamity.