Why do I think the pols are mostly following the voters’ wishes? Do I have any examples?
Yes, house prices. Most people want house prices to be higher. Who benefits the most? If a home goes up by $500,000, who gets most of that? The homeowner. Yes, the real estate agents make 6% of that $500,000 more ($30,000), and the mortgage broker makes 2% ($10,000), and the banker makes another few %, and so on. But $400,000 or more goes to the owner. So sure, the RE and banker types really want the bubble reflated, but the bulk of the dollars go to homeowners, and the homeowners will scream if the pols don’t make every effort to let them hold onto the benefits they expect from past and future inflation of their house prices.
Banks would be perfectly happy with a solution that dropped house prices and forgave debts, as long as they got bailed out. But notice how the primary effort has actually been to pour truly vast amounts into more cheap and easy (<5% rate, 3.5% down, tax credits...) loans to buy homes - to keep the prices high. That's for voters.
