Theory of Constraints - primary culprits of economic meltdown are a few regulators & their criminal negligence!

From Wikipedia I could get the material I read long time back . The current situation of globally interconnected complex financial network should actually have fewer constraints to manage.

These constraints must be by the regulators who have to choose the critical parameters to be observed and strictly controlled. When not done in time it could be a case of sudden collapse causing the correction.

Now that the constraints to keep the equilibrium actually are fewer which means it only needs failure of very few institutions or persons in charge to cause global meltdown. 

May be we can count on our fingers the major regulators like Greenspan, Chinese Wen, and regulators of Europe or say the G7 countries who failed to do their due diligence.

The inexcusable failure of regulation and managing the constraints as required by the persons in charge , very paradoxically have no punishment while the players suffered and the system is collapsing. Institutions like SEC slowly wake up now and deliver words of wisdom now, after miserably failing to to do their duty.

May be even now the solution can be found by following the TOC, I think. Of course I am not an economist; the wiser persons may kindly react.

Basic principles of TOC

The principles are treated as axioms. Goldratt provides[5],[6] some indication on why he chose these as basic assumptions or principles upon which to base TOC. The first two are a derivation of Newton's words: natura valde simplex est et sibi consona (nature is exceedingly simple and conformable to herself), while the third is a bridge on how to deal with human reactions and motivations.

[edit]Convergence

The first principle: Convergence, also called "Inherent Simplicity" states that "The more complex a system is to describe, the simpler it is to manage." Or that the more interconnected a system is the fewer degrees of freedom it has, and consequently the fewer points must be touched (managed) to impact the whole system. A corollary of this principle is that every organization has at least one constraint active in any given point of time (otherwise it would achieve infinite performance relative to its goal). The more complex and interconnected the organization is the fewer constraints it will have.[4]

[edit]Consistency

The second principle: Consistency, also called "There are No Conflicts in Nature" states that "If two interpretations of a natural phenomenon are in conflict, one or possibly both must be wrong". That is, when in an organization with a common goal, two parts are in conflict (or in a dilemma) this means that the reasoning that led to the conflict must contain at least one flawed assumption.

[edit]Respect

The third principle: Respect, also called "People are not Stupid" states that "Even when people do things that seem stupid they have a reason for that behavior". In other words, this principle is stating that people are not inherently irrational.

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