You are right the mortage mess is going to be getting worst. It really is too much to get into on the board..the stock market, people's retirement funds, etc.

You can have all the regulations and yet people will jump up and down to get what they consider "free" money. Americans have no idea how to live-debt free anymore.

In a free market you are still going to have inflation and deflation but supply and demand would rule.
There's nothing wrong with natural "inflation" or "deflation." The problem is when the money supply is manipulated to cause either, since that's when it's most severe. The Federal Reserve (Fed's) do control this by injecting money or by raising/cutting rates.
The market has to have corrections..but between the Fed's and the President Plunge Protection team they will not let the market come down too much or crash.
The people taking the risk in the market should be the ones to take the good/bad.,not the taxpayers bailing them out.

But the mess is only starting wait until the 401K troubles ..since "big" government has created laws mandating people to put money in it. Most 401K money deals with the stock market.

1913 Federal Reserve Act passed, Congress gave up its power to create its own money that it was given in the United States Constitution, and gave this power over to private Bankers who called themselves the Federal Reserve.