Global financial crisis happens and seriously damages the economy of the capitalism societies. Banks collapsed, house value plummeted,  lay-offs of large employees, economic down turn suddently pop-up etc,  what on earth is going wrong with the current capitalism and free marketism? Economists start to blame market failures but others blame government failures. Who should be caught for responsibility in this crisis? 

As my observation, the seed of the current global financial crisis was planted by the thoughts of Prof. Hayek's free matketism with no or as few government intervention as possible  and was germinated and growed by US Greenspan's long-period low interest rate policy as well as the so-called his free marketism adopted for the banking industry. Market failures happened evidently in the financial sector as well as the housing industry because of the free marketism and the lack of proper prudential reguirement regulation rather than later the following intervention by government. It was market failure plus government inaction and wrong doing which lead to this crisis. It was UK's Priminister Brown who abandoned free marketism and re-nationalised bank system that relieved the crisis in Europe. Look the process of privatisation and deregulation of banking system in Taiwan, full of corruption an bribary occurred.  What a mess!

Market failed to distribute wealth properly and justly. In the real world free market seems to maltreat workers and to honour and benefit capitalists esp. high ranking CEOs of the banks and other industries who made terribly wrong financial decisions which is one of the main causes of the crisis and still can get away with affluent payments.   Watch the salaries of these CEOs in Wall Street and in other countries which are hundred or thousand times higher than those of a Priminister or  a President of a nation. Market is perfect or failed in distribution wealth, can you reflect on this?

If free maket is perfect and work for all economic operation then what on earth is going wrong with financial markets which are deregulated and privatised for such a long time in capitalist countries. As greed is encouraged overwhelmed by market in the name of risk managemen, the market value for directive financial goods and hedging contracts are far more exceeding those of commodity markets and we still dont know yet what the correlations and causations among these markets. In simple words these imaginary markets did not fulfil the role of risk hedging but rather contributed to the bubble creation.  Free market without proper regulation and market rules lets the buble grow with human greediness and now needs proper government intervention to release the pressure.

Let the bubble break as maintained by the free marketism adopter everything will evaperate and disappear but release pressure will save a lot of innoncent consumers who did not contribute to the the buble formation which is mainly the product of greedy capitalists and the followers of Prof. Hayek who believed free market and its price is the main mechenism to allocate and distribute resource economically and effectively. However, I dont believe market is a 'marvel'(Hayek's term) and comes from nowhere. We need market to fulfil its 'limited' role just as we need the tertiary entrance examination scheme to allocate students into different unis.  But whether or not this role can be executed effectively relies upon a well human designed and comprehensively regulated market not a "free" market.