Hello Henrique.

I am sure that I have covered this before numerous times but here is a list that I have not itemized before.

Low interest rates spawn asset bubbles. As bubbles expand, banks make loans on asset prices that rise higher and higher. When bubbles burst, they leave behind a pool of debt that cannot be paid back. It was unusually low interest rates that created the housing bubble and the junk bond/equity bubbles we are in now.

Low interest rates spur all kinds of economic development that is not productive. That development sends a signal that things are OK and that shortages exist. In 2005, people actually believed there was a shortage of Florida condos. A couple years back it seemed like going into massive debt to drill oil wells was a good idea. Today we know it was not such a great idea.