Ladies and Gentlemen, it stands to reason that, if we are to make any meaningful dent in the acute national housing shortage, then we need to fundamentally rethink our national housing policy. What is the true extent of housing demand? How do we balance unsatisfied housing demand with the need for food security?
That said, we should also recognize that some reduction in market liquidity is a cost worth paying in helping to make the overall financial system significantly safer. It is important, however, not to overemphasize any effects of regulation. Banks have independently recalibrated their own approaches to risk and scaled back their market-making activities.