This wasn't some accident of demographics though but a specific objective achieved by the banks in the late 70s and early 80s, as documented in Liar's Poker. T

This wasn't some accident of demographics though but a specific objective achieved by the banks in the late 70s and early 80s, as documented in Liar's Poker. They had to push congress hard to do something they knew was dodgy, that is, secuiritizing mortgages. The quid pro quo was the mortgage interest deduction, but even that is correctly seen as a subsidy to banks. Indeed if the government really wants to "help homebuyers", why only support the debt part? By the end of the 80s this mess was already in full swing.