1. Regulation IS FUTILE
Where to start refuting a near infinite artificial reality and dangerously false paradigm?
Start by realizing that any ORGANIZED opinion has a self-interest agenda, determined by what they believe is in their self-interest in their environment which determines the choice possibilities available. In other words, any organized viewpoint and most individual viewpoints are parochial, within a narrow paradigm.
What should be clear to all competent thinkers is: REAL massive organizational failure has occurred. REAL factors are driving REAL events. The laws of reality (action inevitably leads to consequence) are imposing attrition costs for FALSITY. We, the people have already paid a hefty price for this and, the cost IS increasing. Our children will be slaves to the debt we have bequeathed them. This is OK, by some perspectives.
The first thing to do is to KNOW that regulation is an attempt of central command and control. As such, accurate information and models of reality are required, else: garbage in, garbage out.
I posit that anticipation of the future even if we have correct behavioral models is IMPOSSIBLE due to information corruption as it traverses hierarchies and the fact that such information is used to the detriment of information providers, encouraging lying. Proof:
The best (assuming honest regulators) that regulation is falsely claimed to do is, in response to known action (choice) sequences that result in crime, deem these sequences illegal. This assumption is falsely claimed to result in preventing problems that have happened in the past, from recurring.
Note that "honest regulators" is an impossibility due to "absolute power corrupts, absolutely". To allow some to define a "system" with "power to coerce" EQUALS to allow (tolerate) the power that no "rule of man", for all of history has been able to avoid the temptations to prey on all others, at the expense of peace and collapse of civilization. This decimates the pretexts that self-decreed "honest regulators" use to prey. I am MOST DEFINITELY not advocating "honest regulators" because, by the facts of life, "honest regulators" is a self-negating oxymoron, the mere fact of creating a forcefully imposed regulatory environment creates opportunities for dishonesty that no self-interested human being can long resist.
But, it appears that regulators, enforcers and interpreters are coerced by the regulated (lobbyists, bribes).
Another problem is that, since we live in an action precedes consequence reality, regulation must, by definition be reactive.
The result is that we have a massively expensive war (paid for by business, taxpayers and consumers) between regulators and their lawyers and innovative criminals and their lawyers. When innovative criminals manage to create a new method of fraud, such as subprime, well, they can honestly say: we were obeying law, nya nya, cannot touch us. This is a very expensive moral hazard, an environment that appears to be designed (by the legal profession) to achieve these very results.
There is only one thing that can be done to restore an honest economy, given that the future cannot be predicted. Respond to crime after the fact (and compensate victims), using REAL, basic definitions of crime. Restore the "rule of law":
Else, the costs of predatory regulation (ballooning to infinity as it attempts to track and anticipate infinity) and criminals running amok will continue to collapse civilization.
We, the people KNOW we are prey. We are slowly achieving consensus regarding what to do about it
Stay tuned, as history unfolds and the day is seized by the pro-active and, the reactive “go along, to get along”