breaking enforcement of financial regulation won’t immediately break banks, no. but it will leave tinder dry for the next reignition of the Minsky Cycle. it’s like Gramm-Leach-Bliley in 1999. no, it didn’t cause an immediate crisis. but it made possible GFC.

we never did finreg out of some liberal good government ideal. we do it after catastrophes. because when we don’t do it, there are frequent, large, catastrophes. if we are going back to the McKinley era, we also get the Panics.