When companies don't feel the pain of their risk taking, they will take lots of foolish risks.
When individuals do have the pain of saving and being responsible day-in, day-out for their adult lifetimes, they might cease behaving foolishly.
I think that stopping the govt backing of loans needs to phased out, or we won’t live long enough to see the market recover. They never should have backed them to begin with but pulling the plug now would plummet current values.