It is also becoming evident that there is no quick fix for the problem and no quick return to the “old normal” of the population bonus phase. Policy makers now face dual problems: they have to minimize the likelihood of another malign bubble in the future, and at the same time they have to minimize the current distress caused by the past bubble.
Future bubble prevention usually leads to significant tightening of once-loose regulations and government policies toward banking and housing finance systems. The thrust of strict regulations is fueled by popular anger against the beneficiaries of the past malign bubble.