It didn't prevent it, but the lack of it sure contributed greatly to it all.
The biggest single example: the exempting of the four largest investment banks from the previous 12-to-1 leverage rules, allowing them to leverage up to 40-to-1, thus greatly exacerbating the fallout and causing further follow-on crises.
That, among many, many other things, would not have occurred without those IBs being exempted from previously-existing regulation.
Do you really believe non-regulation will be the panacea for all these ills?
Somalia is pretty unregulated. Maybe try your luck there.
Companies doing risky stuff shouldn't be too surprised when they suddenly run out of good luck.
On the other hand, if I were running a company and I knew that my buddies in Washington would end up bailing me out with other people's money because I'm "too big to fail", I would be a fool not to take as much risk as I can. With state capitalism, you can have your cake and eat it.
It didn't prevent it, but the lack of it sure contributed greatly to it all.
The biggest single example: the exempting of the four largest investment banks from the previous 12-to-1 leverage rules, allowing them to leverage up to 40-to-1, thus greatly exacerbating the fallout and causing further follow-on crises.
That, among many, many other things, would not have occurred without those IBs being exempted from previously-existing regulation.
Do you really believe non-regulation will be the panacea for all these ills?
Somalia is pretty unregulated. Maybe try your luck there.