Causes of US housing bubble

A bubble is a short term phenomenon as it hangs around in the air for a while and bursts . The bubble in the housing market of US can be defined as rapid increase in the valuation of property . The major causes of this bubble are : low interest rate, poor lending standards and mania forpurchasing house.
The low interest rate was a consequence of dot com bubble ( in 1990s the internet sector shoot up and many companies entered the dot com business, in order to reap the benefits they incurred huge initial looses ) , which lead to a similar credit crunch in the market and hence the rate was cut. As money was easily available people took loans to speculate and join the party housing bubble party.
Not only this people considered purchasing houses as a good investment as no interest qualifies for the tax break, also the it the popular myth that the value of house always appreciates contributed to the formation of the bubble.
Aggressive advertising also had its role to play in this bubble game . The purchasing of houses was no more an investment rathr a speculative activity. Adding fuel to the fire was the sub prime lending . People with low credit score could easily get the loan but at a higher rate ( details in the previous post).
The party is over resulting in foreclosures , credit crunch, panick , risk aversion , stock exchange crashes .
Has US come a full circle?Will the Fed cut the rates again( dot com bubble)? Are the credit agencies to be blamed ?Is US economy heading towards recession( increase in unemployment, will it lead to decline in consumption and import levels and hence effect other economies????)