The Bush tax cuts and the perfect storm

The costs of the wars in the name of 9/11 made the tax cuts DOA, they only guaranteed a larger deficit.

The second round of tax cuts, the JGTRRA, reduced the tax rates on capital gains and dividends (2003.) How this might have affected the housing bubble I am not sure. However, it did free up considerable funds. The funds were used in the equity markets, with at least some, for the new mortgage backed securities that started this recession December, 2007 an inflated the "bubble" that burst in the summer of 2008.

Probably the fairest thing to do is to let these tax cuts expire for everyone. We could use the money to pay down the deficit to manageable levels before that really causes more serious economic trouble than it has already.

Even Alan Greenspan, who was a proponent of these tax cuts, is advocating their abandonment.