Every financial crisis seems to follow a similar pattern.
After a long, hot bask in the sun, there comes the crash.
Economic growth suffers. Businesses and households suffer. It's
miserable. Everyone wants a return to growth.
But there's a catch: regulation always ramps up. That's
because politicians, defying economic logic, make promises of
never-again. After 1929, there was Glass-Steagall. After 2008,
there was Dodd-Frank. Just like the business cycle, there's a
pattern to regulation. In fact, there's a golden rule of
financial crises. Afterwards, governments will always go too
far with regulation.
And who can blame them?
The global financial...