Regulation isn't binary, as in something is either "regulated" or "unregulated". The quality, timeliness and enforcement of the laws that establish regulation

Regulation isn't binary, as in something is either "regulated" or "unregulated". The quality, timeliness and enforcement of the laws that establish regulation will determine the outcome. Current regulation is weak, but society is better off with it than it was without it. A brief look at the history of the US financial system and its "crashes" may shed some light over this, perhaps even demonstrating that, if anything, regulation needs to improve (both in terms of coverage and enforcing).