Time To Take A New Look At How Interest Rates Adjust??

First, let me get this out of the way.  I'm am by no means an expert on interest rates (how and why they adjust), the fed, or anything of the sort.  This is just an idea that I would like to throw out there and then maybe someone with the proper knowledge can do something with it.

In my opinion I think the Fed has kept the rates too low for too long.  I believe that they were trying to ride the wave of real estate to artificially create a good economy.  By doing so I think they created something of a bigger problem than it needed to be.  There were of course other factors that contribute to a bubble bust (loan fraud, over building, high risk loans, etc.).

The economy, the way I see it, isn't as nationally based as the government and magazines would like you to believe.  In my market we were doing great for a long time after everything was starting to get bad for many other major cities.  In fact the first of this year was just amazing for me!  I believe economies are more localized and therefore have different economic needs than a national organization can determine.

My solution is this.  Create a system of interest rates that is different for cities and industries.  Let me give you an example of what I am talking about.

City "A"

Is a rapidly growing city residential development is at an all time high, commercial is steady, and industrial is low.

With these factors in place the city might have interest rates as such:

City "A" Residential: 8% (not trying to kill growth, but just stabilize it)

City "A" Commercial:  6% (try to promote more growth, but not create too much)

City "A" Industrial:  4% (try to promote an influx of growth)

City "B"

Has been doing poorly for years in all aspects, zero and negative growth.

City "B's" interest rates might look like this:

City "B" Residential: 4%

City "B" Commercial: 4%

City "B" Industrial:  4%

This gives people, investors, and business' reason to move within this city and create growth.

Now there needs to be an automatic system that determines rates on a day to day basis for each of these industries.  If there is a system in place then it is managed by factual information and not outside pressures.  These rates adjust automatically and only the economy has control.

I know it is a lot more technical and difficult than this but I really don't think it's impossible.  We can do amazing things when we put our minds to it.  I really want to hear all of your opinions/ideas good or bad, but try to keep them positive. :)