There is a lot of information that does not have to be made public and people can do as they please with it - but this was not the cause of 2008, for the most part.
It's not circular logic because nobody really thinks that the market will stop corruption by itself.
And FYI if regulations and laws were not in place, forget about 'market correction', there would be no market to begin with. See: dysfunctional, corrupt states. They barely have 'markets'.
"but do you feel if regulatory bodies were given more power to execute on already existing laws"
I don't know. It might not be a matter of law or even policy, but failure of those in the office. Maybe they were understaffed, or had the wrong incentives.
Banks have tons of oversight committees and auditors, and they call kind of failed as well.
Major funds buying huge bundled up mortgages were maybe a little lazy in not doing diligence, but that's a 'market' thing not a regulatory thing.
It was a lot of big and small failures - market and regulatory, that caused 2008.
If everyone is cheating it's not going to work.
This is circular reasoning. The market works on the information that is available at a given time, which includes all the fudging of numbers that salespeople and marketers do as part of their quest for maximising their individual interest - being handsomely rewarded by the market for this.