The largest banks that failed (Freddie Mac and Fannie Mae) were almost arms of the government, they were tied so tightly in. And to call the financial industry of the U.S. "unregulated" is, frankly, breathtakingly idiotic or at the very least utterly ignorant of the market and the regulations imposed thereon. The WHOLE PROBLEM was that the government was TOO involved with the financial industry, not that they were too hands off. You don't get quite they level of giant sums of money and poor decisions without the government involved somehow.
There's a lot of disinformation out there regarding the nature of the financial crisis, and I can see how one might have such an opinion. However, I have made a genuine effort to research this issue and I can assure you that, as difficult as it may be to believe, our government did allow a 60 trillion dollar market, in the form of, modern OTC derivatives to exist completely and utterly unregulated.
In fact, this market was so "free" that that figure--60 trillion--is actually just an estimate (some go as high as 600 trillion). Nobody knows just how much money has been tied up in what was essentially bets between the mega-rich about the rise and fall of company values. Even crazier, not even the companies themselves know the others' positions because the information is secret. As a result, they've stopped lending to each other, the so-called "credit freeze" or more pleasant euphemism "lack of confidence."
Before you label others ignorant or a revisionist, please educate yourself on this issue. If you think Fannie Mae (an institution which has been around since the Great Depression) was the cause of all this, you have been misled. You need to ask yourself why you have been deceived and whose purpose does this lie serve.
-Grym