this is what people do who are supposed to be the "good regulators".. ;-) but how can someone blame them, they are just people - they want government high-paying jobs and some fun at work..(H)
The Securities and Exchange Commission is the sheriff of the financial industry, looking for crimes such as Bernard Madoff's Ponzi scheme,but a new government report obtained by ABC News has concluded thatsome senior employees spent hours on the agency's computers looking atsites such as naughty.com, skankwire and youporn as the financialcrisis was unfolding.

"These guys in the middle of a financialcrisis are spending their timelooking at prurient material on theInternet," said Peter Morici, aprofessor at the University of Maryland and former director of the Office of Economics at the U.S. International Trade Commission.
"It'sreckless, and indicates a contempt for the taxpayer and thetaxpayer'sinterest in monitoring financial markets," Morici said.

********abcnews.go.com/GMA/sec-pornography-employees-spent-hours-surfing-porn-sites/story?id=10452544

"I repeat, the problem is not with regulations, bit rather with those who either choose not to follow them or fail in their enforcement duties."
You don't get it. The economy is such a complicated system, with so many players, incomplete information, stochastic behavior, unknown factors, that NO administrative regulations will ever work as intended. This system can only be "regulated" based on the most basic principle of supply and demand. All other attemts will inevitably fail, as they always do

Michail, there is no system so complex that it can't and and shouldn't be regulated... although, I understand how it may seem that way to some.

based on the most basic principle of supply and demand
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if you take a basic economics course you will realize that this principle is not without it's flaws... hence the need for regulations.

"there is no system so complex that it can't and and shouldn't be regulated... "
Это просто великолепно! Лина, вы не не просто социалист, вы архи-супер-дупер-классический социалист! Вас можно цитировать, как пример standard socialist approach to economy! :-D

Michail, using your logic - this country is so huge, we shouldn't even bother with trying to secure our borders. Airport security missed the 9/11 bombers - lets do away with that too. What else should we get rid off?

Michael, this is EXACTLY the point..
Speaking mathematically markets are stochastic.. there is no predictability of outcome. Once you introduce a new variable ( like regulation ) the outcome is totally unpredictable.

Michail Vi yavno ne znaete nichego ni o sotziolizme, ni o kapitalizme, ni o ekonomike. :-)

unfortunately, mathematic models only work in the classroom, not in the real world.