It’s not. I really hate it when Marx fans and Rand fans find something in common, and one of such rare things is thinking that preventing big trees from falling is somehow connected to normal economics.

Naturally it’s the other way around, the more painful it is to make such mistakes, the more optimized the market is.

Other than that, gambling on the assumption that regulators are going to save you is the same as cheating, stealing etc.

It’s like the suicide joke again - “more suicide jumpers means fewer suicide jumpers”. Market economy is about evolution. If you impede evolution (say, with preventing somebody from failing or with copyright and patent laws), then it loses its main advantage over anything else.