And this is where we will have to agree to disagree. For if regulations were the bonding agent as you put it, the EU would have the greatest Economy in the world as they are the most regulated.
The problem is that the markets are neither managed nor are they free. They are riddled with holes.
Your argument for greater regulation does not hold water for the simple reason that if you look just a quick glance really, on those economies that have flourished throught the centurties, they were the ones with the least amount of regulation on how to conduct business.
Now let me be clear, there is some regulation needed. There needs to be regulations that are Policing in nature. When you have regulations that seek to short circuit the market and force certain aspects upon the market you end up with the crap we have now.
The first economic crisis this country had was during Washington. We had one every 15-20 years afterward. Farms and businesses were lost constantly. Every 15-20 years. Zoom forward to the Great Depression. Things changed. We got The Glass-Steagall Act of 1933. We did not have a single economic upheaval for 50 years afterward. We also had the great economic growth during that period in our history. At a point in the 80s we decided that Regulations were troublesome and in the way. The Savings and Loan Debacle came soon afterward. Gramm/Leach/Bliley came in 1999 and gutted Glass-Steagall and just six short years later the stew that became the 2007 Recession and Financial Sector Crash was already boiling. Both Savings and Loan and the Financial Crash [and let's not forget Enron and MCI/WorldCom in the early 2000s] were primarily triggered by a lack of major regulations and a failure to enforce the ones on the books. That is not an opinion, that is fully documented and established.
So, this idea that deregulation is a wonderful thing is a false prophet. It leads folks along a path that is not supported by facts.
And to suggest that "the economies that have flourished throughout the centuries" were those with the least regulation is just not true on two major levels. First, regional and international regulations were often conducted by armies and navies rather than tort and regulatory boards. But MOST important, "throughout the Centuries" there were not 6.6Billion people. We no longer are able to get along on a handshake and word of honor.
Just this past January you posted a new thread asking International Law. Why should we care?
and went on to suggest that we should only deal with treaties that serve OUR interest and not the interest of all the signing parties. So, on some level regulations need to be in place to protect business from folks who have ethics like THAT.
Back to the Jenga, I suggested that REGULATIONS were an applied bonding agent. You immediately drew assumptions and used an example of the EU as the most Regulated in the World [they are not]. Smart regulations allow things to work correctly, much like the ECU in your Mercedes is nothing but a collection of regulations that define parameters of each and every system and insure that they always work at their optimum. Government regulations, when done correctly serve the very same function.