Becker and Posner discuss Sub-Prime housing markets.
...And I try to argue against the Chicago-school-as-usual line of thinking they offer up:
"However, intentional misleading presentations to families who were clearly unqualified to take on home ownership was not the norm but rather were exceptions."
How do we know that? And, what are defining "norm" as? 20% of cases? 50%? A large majority???
The foreclosure rates keep rising and rising - ie - we haven't even seen how extensive this problem is yet. We just know that it is bad now, and getting worse.
Also, you lump 'congress' into one entity that presumably wants to prevent poor people from home ownership. I don't think I've heard that from anyone - all I've heard is talk about putting some restrictions on the blatant smoothtalking and in some cases all out lying that obviously has been happening --- whether they be 'exceptional' or not.