Maybe you guys are more informed on the history of the 2008 financial crisis than I am, but the story I heard was that banks lacked solvency due to a high number of low-quality loans on their books. Loans that got there as a result of Clinton-era de-regulations that made mortgages more accessible.

Essentially, it was decided that a policy of loan approval/disapproval that was based on financial merit was biased against poor people. And when democrats say "poor people" they mean "black people".

Then in the late 90's and early 2000's we saw an increased prevalence in some exotic financing programs that allowed more people to buy houses. Not only that, vehicles like the 'interest-only' mortagage allowed people to buy houses they couldn't afford by offering extremely low payments in the initial years, followed by inflated payments in the later years. They sold people on the idea of "hey, don't worry about what happens in 7 years from now. YOu're a smart, hard working guy...you'll surely be making more money by then"

So i'm not really seeing how regulation caused the crisis. Seems to be quite the opposite. the government allowed predatory practices to take over the market. Had they been a little more on top of things....ie. regulated more....perhaps the banks could have maintained solvency