Which nanny state:

• Banned its mortgage lenders from imposing prepayment penalties;
• Banned balloon repayments;
• Banned negative amortization mortgages;
• Banned loans based only on collateral value without regard to the borrower’s ability to repay the loan;
• Banned lenders from charging for services the borrower didn’t receive;

–and thereby avoided the worst effects of the housing bubble?

Mike at Rortybomb has the answer, which might surprise you.