Tom DiLorenzo posted the following quote by Ludwig Von Mises from a lecture he gave in 1952:

If there is credit expansion [by the central bank], it must necessarily lower the rate of interest. If the banks are to find borrowers for additional credit, they must lower the rate of interest or lower the credit qualifications of would-be borrowers. Because all those who wanted loans at the previous rate of interest had gotten them, the banks must either offer loans at a lower interest rate or include in the class of businesses to whom loans are granted at the previous rate less-promising businesses, people of lower credit quality.

Is it any wonder that Austrian economists saw this current crisis coming from a mile away?