Another One Blames Regulation....

My question, is this....

Given the large amounts of regulation that the banking an financial services industries now face, what is that makes people think that even more government regulation is a solution to today's or tomorrow's problems? And why didn't regulation do the job it is supposedly designed to do in this current situation?

Regulation seems to beget more regulation as governments with some politics overlaid on the decision making process continue to meddle in the allocation of capital.

Another fellow weighs in on this, here.