The State of the Free Market

Could I second the Hive's plea that we all take the US financial crisis more seriously?

I can't resist arguing the cause of social democracy though. John Quiggin here in Brisbane has a great trade for those who argue that the current difficulty is not some failure of "the free market" on account of the US not being a free market. I'll have to quote it almost in full

I will agree that
(a) the US is not a free-market economy, and its failures do not constitute evidence against the claim that a pure free-market economy is the best possible form of social organization
(b) no other actually existing society is, or has ever been, a free-market economy, and no actual or conceivable events anywhere constitute evidence against the claim that a pure free-market economy is the best possible form of social organization
(c) In discussion with parties to the agreement, I will not contest the claim that a pure free-market economy is the best possible form of social organization

All I ask in return is that the counterparties to the deal agree not to advocate, oppose, criticise, or comment on any policy or political position that might actually be implemented, to ensure that the purity of the free-market ideal is not compromised by actual experience.

John is also willing to make the same offer to Marxist-Leninists for pretty obvious reasons.

He also thinks we might have seen the back of neoliberalism, I'd post a link including his assessment of the New Zealand situation but his site seems to have crashed just at the moment.