Lack of government regulation was anyway not the problem. The problem was rather a failure of the regulators to do their job. They had the powers which would have enabled them to intervene and stop the excessively risky, indeed the downright fraudulent loans which are at the heart of today\’s economic crisis. They failed to use them.
Will a new army of officials be any more effective than the last lot at identifying the blunders and the mendacity of some bankers? We all hope they will – but it is not the way to bet. The record of state officials in running any business is even more dismal than the recent performance of investment bankers.
An interesting point to put to those who would put their faith in regulation and regulators, no?