I really agree with the position that the financial sector got enormous political favortism, in getting deregulation, and then in getting bailed out. Good post at Big Picture.
The thing about laws and regulation, they all have an effect on behaviour. Too many regulations these days are encouraging everyone to behave like grasshoppers rather then ants.
I have previously written how I think mortgages ought to be regulated, this business of allowing enormously more money to be borrowed just because rates are low is insane and we are dealing with the fall out from that insanity.
When I worked in banking, wow, I got my first job there 30 years ago, there was still common sense applied to loans. For example, my loan officer mentor, who was nearing retirement age at that time, discussed the reasons for giving or declining a loan. I always remember this one where the guy wanted to borrow for xmas gifts and pay it back over 18 months. This loans officer said the maximum term for a loan for xmas that she would give was 3 months. He wanted to take his girlfriend on a trip. Now it is much more about qualifying criteria based on numbers, yet character and personal money management characteristics are very important. Most people that wouldn't even thing about borrowing money as the man in the example probably also manage their finances better and people who make decisions like the man in the example are more likely get themselves swamped in debt.
I have also previously spoken against the silly American policy of allowing mortgage interest to be deducted. It encourages people to stay in debt. But, a country or a household is simply stronger without debt, so by regulation the US makes itself finanically weaker.