Politicians try to stop future financial bubbles with Dodd-Frank types of regulation which never work. But they keep trying because the effort makes good theater.
Bubbles are man-made, enforced by government policy and regulation. They breed on human psychological extremes. And they feed on panic.
The onus and guilt may be thrust on private parties for political purposes, but bubbles exist only if government agencies permit them to do so.
Actually, it’s far better that government does nothing as its cheaper and never causes Greece-like meltdowns we’re now witnessing. ( See the Earl J Weinreb NewsHole® comments.)
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