>Fraud is fraud. Yes, and lack of regulatory oversight (i.e., law enforcement) produces fraud. We saw this with Enron and later with Countrywide, AIG et al. Th

>Fraud is fraud. Yes, and lack of regulatory oversight (i.e., law enforcement) produces fraud. We saw this with Enron and later with Countrywide, AIG et al. The line seems pretty clear to me - we deregulated the derivatives market (via the CFMA), Enron makes use of the lack of oversight to perpetuate fraud. >Over regulation is a problem exactly because it builds too big to fail corporations. It eliminates competition due to regulatory capture You'll have to spell this out for me, because I just can't see it. Regulatory capture is not "over regulation", it is the opposite, at least in the case of finance - it is the regulatory apparatus failing to do what it should (regulate) because the power lies in those being regulated (e.g. the NY Fed's kowtowing to Goldman).