Yeah. come on man the number of employees working for the government(size) has zilch to do with the housing bubble. The people that aided and encouraged the bubble working in the government did not do so because they were misguided government technocrats – they were aiding in the process of capital accumulation for the ones with the most capital.

Besides every government “regulator” comes from the private sector. Just look at the list of treasury secretaries, look at who’s on the board of the Fed?