> ...expected to fail from time to time, but fail gracefully, in a way that doesn't threaten to shut down the economy's ability... How's that regulated gracefu

> ...expected to fail from time to time, but fail gracefully, in a way that doesn't threaten to shut down the economy's ability... How's that regulated graceful fail working for ya? Seems like it broke down completely a few years back in the home credit sector. Instead, we had too-big-to-fail, socialized downside supporting privatized risk-taking, huge gov't bailouts, and not a single wrist effectively slapped. The truth is, it is very, very difficult if not impossible to regulate commerce in a way that is fair and has a limited set of intended consequences. Any time you regulate, you are telling willing parties they may not transact business on their preferred terms. By doing that, you take the rational actor out of the picture, and replace it with a hypothetical rational agent made up by some bureaucrat who generally makes up arbitrary rules under pressure from vested interests.