And those are the EXACT same conditions which caused all the mal-investment from 2003-07. "Starving for yield" or "chasing yield" by otherwise risk averse individuals or entities...they wound up stuffed to the gills with worthless MBS and other derivative "junk". Ultimately, there is another cleansing of the mal-investment and the cycle repeats over and over again with this current monetary system.
Stability as in balance between rev and expenses. I guess you mean the deficit is coming down as a % of GDP, again it is in a completely trivial way. We may not be being punished for it atm, but our credit has been downgraded, suppose we need to pay more int for our borrowing. Suppose we have a major war. Suppose hc costs continue to rise, unsustainable medicare continues to cost more. SS is expected to begin paying out more than it takes in + interest, within the next decade. Obamacare goes into effect in 2 years. With our current growth we don't have the ability to handle any of these things, certainly not all of them. The point is we are not in a fiscally sustainable position. We DO have a spending problem, and on the present course it is only going to worsen.
Germany after WWI and Iceland recently showed the world how to deal with the "problem" of austerity.....