The free market, fundamental for the efficiency of the economy, needs to be regulated if it is to operate in the interest of society. It requires rules, controls, the reign of legality and security, the sharing of principles and values.
Take away the punch bowl just when the party gets going. We have learned the hard way that when the music is playing, bankers want to dance. One way to restrain the excesses of booms is to impose countercyclical prudential requirements to lessen the procyclical nature of the Basel 2 framework for credit risk.