"Meddling" is probably more accurate than "regulation"

This paragraph from Thomas Sowell's excellent op/ed today ("Inherited from Whom?" - National Review Online), caused me to conclude that the word "regulation" is probably inapt when discussing the impact of "Progressive" (Liberal) policy:

Another political fable is that the current economic downturn is due to not enough government regulation of the housing and financial markets. But it was precisely the government regulators, under pressure from politicians, who forced banks and other lending institutions to lower their standards for making mortgage loans.

It's politically unfortunate that the connotation of "regulate" is typicajavascript:void(0)lly benignly or even positively restrictive.