Andrew Ross Sorkin is certainly correct when he writes that "the prevailing wisdom is that we need tighter regulations to avoid another crisis."
Unfortunately, the prevailing view is incorrect. The financial crisis was caused by systemically imposed rules. It was the unintended consequence of a series of regulatory actions enacted over decades.
These actions concentrated financial investment in the housing market, and built up risk on bank balance sheets — even though many of them were intended to reduce risk.
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