Besides what Nathan correctly says - that asset bubbles often happen with high rates - also important that low rats reduce debt burden, making bubbles less destructive when they do happen.
If we think that financial markets funnel abundant credit into asset specualtion, the answer is to better regulat private finance and/or replace it with public institutions. Not to make credit artificially scarce.
I wrote a blogpost criticizing the low rates --> asset bubbles story back in 2012. rortybomb.wordpress.com/2012/04/06/far…
(Has the debate moved forward since then?)
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