Yet his proposal to "vary the loan-to-value ratio on commercial and residential mortgages to forestall real estate bubbles", though probably sensible, strikes me as a political nightmare.
I can already hear the cry of the financial sector lobbyist: "This hardworking family were allowed a 100 per cent loan to value mortgage five years ago. Now the regulator is saying a new hardworking family today can only get a 70 per cent mortgage, which means they cannot afford their 'dream home'. People cannot get a foot on the property ladder. This meddlesome regulation must go!" It would be a brave government which could withstand pressure like that.
Pricking bubbles is easier in theory than in practice, not least because a lot of influential and wealthy people tend to have a vested interest in their expansion.