When do free market conservatives like governmental regulations? When the situation looks really, really bad. Welcome to the club, Bill Buckley.
And for all those who think this is just letting "stupid" individuals who didn't understand the risk they were taking reap their just desserts, that's like providing a two year old a gallon of gasoline to play with in the town center and letting another two year old hand them a match. In the current housing/financial scam, the real goal was to "sell" the gullible buyer a deal they couldn't refuse, strip off all the excess cash (great profits on these predatory loans, you know) and sell the remaining "debt" to other gullible buyers (overseas investors, pension fund managers, and many of us who hold 401k funds invested by our favorite fund managers). And now we all get a front row seat watching the town go up in flames when the kids drop the match into the puddle of gas.
As Bill Buckley admits, it's not just the "stupid" buyer that regulations are supposed to watch out for -- it's all the rest of us since we live in the town where the kids are playing with matches.
Your turn now.