When there was market discipline causing firms to avoid bad underwriting practices, many of those regulations were not necessary. But now nearly everything but

When there was market discipline causing firms to avoid bad underwriting practices, many of those regulations were not necessary. But now nearly everything but the actual incentives has been blamed for why the market crashed. Now, when it crashes again, it will of course have been totally unexpected and impossible to predict, so of course a bailout will be necessary, etc. My overly simplistic take is that the finance industry effectively practices "risk laundering"...