I think ultimately people have to decide how they want to pay for their mortgages. We could segregate this sort of "retail" finance. Then it wouldn't really be

I think ultimately people have to decide how they want to pay for their mortgages. We could segregate this sort of "retail" finance. Then it wouldn't really be affected by markets booming and busting. But it would be more expensive and less available. Or we can allow cash to flow from big institutions to small private borrowers. But then we have to accept that when an institution fails it's either bailed out or there is a credit shortage and small retail borrowers have to do without or pay a lot more for a while. That's the basic choice here. That's why Glass Steagell was repealed (in the mortgage space anyway). That's why the bailouts were "necessary" (politicians rightly judged people would rather bailout than see their mortgages spike).