The Americas: Going its own way

Author: | Published: 30 Oct 2015

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...