The Spanish example

Since the onset of the financial crisis Democrats have been beating the war drum loud and hard for more government regulation, blaming alleged deregulation under the Bush Administration for the current woes. Some have pointed to Spain, which prohibited full securitization of bank assets, as an example of how effective government regulation can help avert such crises. That's all well and good -- except that now it appears that Spain's banking sector is in trouble.

The search for examples of heavy government regulation preventing financial crisis continues.