"In the wake of every financial crisis, politicians face the demand that they Do Something. They feel they have to enact something to “make sure this never happens again”—although historically it has always happened again anyway. Moving the boxes on the regulatory organization chart and expanding regulatory powers are always available options, and the financial regulatory bills currently under consideration in the House and Senate display the typical process of doing both. Missing from the bills, however, are strategies to create countercyclical elements to moderate swings, as well as reforms for Fannie Mae and Freddie Mac, the government-sponsored enterprises at the center of the housing bubble. Absent those reforms, the proposed regulations will do little to address the flaws that caused the crisis in the first place." Read more. "Lots of Regulatory Expansion but Little Reform" Alex J. Pollock Regulation Outlook, No. 4, June 2010. Evgeni Dinev / FreeDigitalPhotos.net.