In light of Fannie/Freddie, how does McCain's plan for "less regulation" help?

Even as the housing bubble took Wall Street down for the first market bottom in the spring, McCain preached "less regulation" as the solution. He didn't say this five years ago, but just a few months ago while it was all unraveling. McCain probably even thought he was a clever guy for his snappy answer that pleases the GOP faithful. Less regulation had worked so far in their minds, so what the hell? Even yesterday, Palin talked about making Fannie/Freddie "smaller" though it wasn't clear if she meant the actual company or the size of the oversight team. (That's what happens when you don't answer questions.) McCain admits that he knows nothing about the economy and calling for less regulation really reinforces that proud ignorance.

If anyone can actually ask John McCain a question (or Palin for that matter) it would be interesting to hear how the McCain plan (in reality, the Phil Gramm plan) of less regulation would help in the case of the Freddie/Fannie nationalization or whatever they want to call it. Obviously McCain is incapable of answering the toughest question facing America right now so we can even let him use his cheat sheet and economic brain, Foreclosure Phil.