Hybrid free/regulated systems like ours have all of the downsides of both approaches but none of the benefits. I do believe that the free market regulates itsel

Hybrid free/regulated systems like ours have all of the downsides of both approaches but none of the benefits. I do believe that the free market regulates itself, but we don't have a free market. In a free market, there would be no bailouts. In our system, on the other hand, wall street counts on bailouts. You don't leverage your company 40 to 1 unless you believe there's a safety net. It's in vogue to believe that everyone in finance is an idiot, but they're not. They do exactly what makes business sense within the rules of the market. And our rules say: leverage yourself as much as you can. The fed will be there to bail you out if you fail.