I was wrong.

In the fallout of the mortgage crisis and the subsequent layoffs on Wall Street and beyond, I predicted a new wave of stiff regulatory initiatives. Like a typical doomsayer, I expected Sarbanes Oxley II: The Return.

So far -- nothing.

There have been a few congressional hearings and today the Fed announced new rules for handing out loans for mortgages, but other diversions have taken center stage. With a fierce presidential contest under way, an unsteady stock market and insanely high gas prices, politicians are hesitant to place new regulations on the securities industry. The last thing this shaky economy needs, you can hear them mutter to themselves, is more restrictions.

The mortgage meltdown had plenty of victims and bad actors. Questionable companies sold mortgages to people who didn’t understand them. The investment firms collected these foul-smelling mortgages and wheeled and dealt them en masse. It seems only Goldman Sachs bit the bullet and offloaded the bad risk just in time. That said, there are still plenty of layoffs happening inside the most secretive investment firm on the planet -- add one part Mafia, two parts Kremlin and a splash of Nixon White House.

One colleague at Waters thinks that people are waiting for the presidential election to be over before deciding what to do next. This makes sense. Presidential elections have a huge psychological impact in this country. No matter who the winner is, some will think it is either four years of the same or a gamble on a new administration. But all in all, voters will be relieved and will want to get back to work in restoring one of the strongest economies on the planet.

In a tight race -- be it presidential or economic -- handing out speeding tickets might not be the best idea.

Note: This first appeared in Waters News, a weekly newsletter for the financial IT community. Subscribe today.