If men were angels, no government would be necessary. If angels were to govern men, neither external nor internal controls on government would be necessary. In framing a government which is to be administered by men over men, the great difficulty lies in this: you must first enable the government to control the governed; and in the next place oblige it to control itself. A dependence on the people is, no doubt, the primary control on the government; but experience has taught mankind the necessity of auxiliary precautions.
— James Madison Federalist Paper #51
This is the key point that the regulators always forget — they look at stupid things people do and want to stop them from doing such things, without ever considering how giving people power and money makes them better people.