Why do you say self-regulation failed when it worked not as expected but it did.... without any Fed support for Fannie and Freddy the real estate bubble woud never take place, why do you expect that some more regulation implemented by the same people would have produced a different result?

Without Fed backing for a large part of the mortgage market, this level of leverage wouldn't have been ever reached, all these derivatives and commercial paper backed on mortages never sold, don't you think that Gov and State guarantee and involment in the free market are in the first seat when you look for responsability for the absence of a self regulation success?