the market can and will correct itself. there are two problems however:

- actually getting rules implemented and enforced (political suicide by regulators - had an example of that in my own country just a couple months ago, made a mess in the government, the new rules didn't pass in parliament, governing party lost 10 pp in polls anyway)

- very irregular period of convergence from old rules to new (societal turmoil guaranteed, political consequences very likely) - see thatcher's closure of British coal mines for a good example