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Regulations are the brakes that keep the train from going too fast and coming off the tracks. If housing had gone up 3-5% in the past 10 years, house prices would be at the same place that they are right now, yet we would feel a lot better about the outlook of this economy. It's true that it is harder to make money, and growth isn't as fast. But since anyone could have gotten a mortgage, and plenty of people got too many mortgages in order to make a quick buck or borrowed too much from their home's paper value it caused us to get into the mess we are in. Banks have grown too big and should have their size regulated. When IndyMac failed, it was just another bank. But if Chase or Bank of America failed, well there would be major problems.
It will be interesting to see in the new administration announces a comprensive economic plan and direction for the next 4 years when they take office.
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