The market is governed by the law of supply and demand. This law of supply and demand is a negative feedback loop. As such, the market system should be understood as part of the classical Control Theory.
The Control Theory teaches us that all such systems have a stable region, characterized by the the poles of the Laplace transform on the left half of the Complex plane. The system becomes unstable if one more of the poles move to the right half of the plane. The market is enormously complicated and it is not possible to compute the Laplace transform for the system. What this principle does tell us is that the belief of the free market ideologues is just wrong--That government is needed to carefully maintain the system in the stable region and when that fails and the market moves to the unstable region, the consequences are sever.
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