Are Countercyclical Housing Downpayments A Dead-Simple Tool For Ending Future Housing BubblesSubmitted by wirebaugh on Tue, 08/17/2010 - 14:01
"Basically, when prices are going up, downpayment requirements would be hiked, having a leveling out effect."
"Also, as MIke Konczal has pointed out, one simple point is that higher interest rates during the boom times (ideally) will have this effect automatically."
If the Fed did what they were supposed to do, we wouldn't have housing bubbles. But they don't. So we do.
Once again, Banks will continue to get low interest rates, and borrowers would need to pay more down payment for home purchases. This whole idea makes absolutely zero sense. Much like the Fed.