Yes, that's true. But if you think the Dems are mostly/solely responsible for this, you're kidding yourself. (And I am NO fan of the Dems or the left at all). Where were both Clinton and GWB when it came time to enforce the *existing* laws concerning naked short selling? (Which has been illegal for a very long time and which was going on regularly during both administrations.) See, I fail to see how more regulation is going to change much when the government can't be bothered to enforce the laws already on the books. And THAT, ain't a partisan thing. Both parties have behaved very badly in this regard.
In truth, Greenspan was more right than wrong even regarding how markets would punish fraud. Fraud is not sustainable unless you use force because fraud - sooner or later - collapses. But the government swine made sure that no collapse was possible: They bailed out the banks that took insane risk. They bailed out the greedy pigs that took out more mortgage than they could afford. They bailed out the lazy union slobs that demanded far more for putting bolts in the bottom of a transmission than they ever were worth. In short, there's little point in having market transparency and honesty if every time someone is about to lose, the government steps in, prints funny funny and "saves them" from themselves. Markets DO work - efficiently and mercilessly. They cannot, however, overcome the overweening force of government when it is applied to thieves, morons, and whiners respectively.