Governments have acted. Providing copious amounts of incentives (CMHC, RRSP withdrawals, first time homebuyer credits, selling citizenship for RE investment, principal residence exemption allowing builders to claim the exemption when buying, renovating and selling homes, etc.) and forcing the limited use of QE to keep rates low (the Prudential Liquidity Management Plan). Couple this with a BoC that keeps rates artificially depressed (even when CPI was 2.9% for the year, GDP was growing at more than 2% and personal debt was growing exponentially, Carney kept rates low stating that debt growth was not an immediate concern).

Governments and the BoC have painted themselves into a corner. Proposing that governments can solve the mess they created is wishful at best.