People who live beyond their means!
That makes far too much sense to ever be adopted.
Another part of the problem is identifying actual bubbles as opposed to regular supply/demand issues, and whether government can objectively do that. There are also concerns about whether the goverment has the authority to do anything about what it might suspect is a bubble.
I think the question about what to do about the “housing bubble” is rather counterintuitive simply because of the source of the perverse incentives that allowed it to occur. It wasn’t the markets. It was the Basel Recourse Rule among other regualtory irregularities that unhinged housing/finance market equilibrium.
With that in mind, less government involvement in the financial system is likely the better solution as it seems to have been behind most other bubbles in recent memory as well.
The largest bubble of all is the cost of higher education. Makes housing and even health care look like goose bumps in comparison.
I saw it coming in 2003, and I have very little background in economics. My prediction then was that the “burst” was going to make the S&L bailout of the 1980s look like a walk in the park.
That would have been my first guess.