If the entire banking system, and the property market gurus, and the beneficiaries of the spin-off economic activity and stock market appreciation all become cheerleaders for the continuation of credit-fuelled bubbles on the ground that “this time it will be different” the regulator may still stand in opposition.
All too often, however, the regulator does not sufficiently suffer from professional deformation and a sneaking suspicion that the market may be wrong is weakened or drowned-out by the plausible chorus of boosters to which the local regulator is daily exposed. Here again one can hope that the outsider will bring untarnished to the party the scepticism that is natural for all regulators.