I guess the counterpoint to this would be to say that it's policy, not human stupidity which has led to the bubble. By keeping the interest rate at almost zero for over a decade, the fed has incentivized dumping money in the market, since there's really nowhere else to put it. And dumping trillions into the economy in the past year has only added fuel to the fire.

It can be argued that trying to "regulate away losses and negative outcomes" is exactly what has been happening over the past decade.