Because now the banks are being OVERLY restrictive on lending, and the result is prices for rentals is skyrocketing. My counter question is: why are you in favor of the government setting the down payment requirement - should that not be a free market outcome?
See posts 22 and 29. If I truly believed that the government would have the cojones to say no the next time Wall Street pulls a Chicken Little like they did in 2008, I would entirely agree with you.
Banks have been reckless...which is kind of funny. My credit rating is pure gold. When I bought my VERY modest home about 10 years ago, I had a 20%+ downpayment and the bank acted like they were going to do me a favor accepting my loan app. I had to jump through my own rectum to meet their qualifications (even with my perfect credit history) all the time they were handing out liar loans like popcorn to 'others'