The less regulated is the sector, the more profitable it will be, the more resources it will in turn have to lobby and thus the more likely it will be to succeed in influencing the legislator.
(3)  Don’t underestimate safety nets  Third, do not underestimate the beneficial effects of safety-net measures especially when investors’ confidence is fragile. When market confidence is eroded, investors are “excessively” averse to uncertainty and tend to “wait and see” until they feel more confident about making market transactions.