As someone who had no faith in Bushco and refused to invest in the stock market much the last decade (oops bad call) I can tell you that ordinary time deposits don't offer squat return.  I've have been much better off buying speculative real estate (even without leverage).

You can't offer 1 year CD's at 3% when inflation is 3% and expect people who do save to rush right up to the window.  

People may seem irrational but they aren't when you look at them in aggregate.  If there is no return on saving, use the money instead.  That's the Greenspan legacy.