From Richard A. Epstein and M. Todd Henderson, “Marking to Market: Can Accounting Rules Shake the Foundations of Capitalism?” John M. Olin Law & Economics Working Paper No. 458, April 2009:
It is a familiar story: a problem begets a regulation, which begets attempts to avoid the regulation, which begets a new problem, which begets a new regulation, and so on. [Footnote omitted.] The argument at each regulatory stage, after failure, is that the problem can be solved by smarter or more efficient regulation. But, at the end, one is left wondering whether the game is worth the candle, since the endless cycle of creating, enforcing, evading, and reregulating may dwarf the costs of the original problem.
(Also see Arnold Kling, “The Chess Game of Financial Regulation”.)