The leading proponents of "unregulated free market capitalism"—have failed to realize or have blindly denied that failure—or, even acknowledge that it was due to "a flaw" in Smith's theory.
Which states that: "no regulation of any type—would be needed to ensure the mutually beneficial exchange of goods and services took place, since this "invisible hand" would guide market participants to trade in the most mutually beneficial manner." Source Adam Smith
The last phrase "mutual benefit" requires faith—which is to say—"a trust"—that each individual is acting with absolute integrity.
What sane person would argue for deregulation of traffic laws, yet that is exactly where the "unregulated free markets" libertarian argument leads in its extremes—anarchy.
Attitudes lead to choices—choices lead to paths of behavior—paths of behavior lead to actions—actions lead consequences—consequences lead to results. This is not a new idea. It is a reality born of the collective human experience, and one that every caring parent tries to instill in their children.
Their attitude of arrogance; led to choosing; to deregulate banking—deregulation led to the behavior—of ignoring moral hazard and extreme risk taking—extreme risk taking led to creating credit default swaps—credit default swaps led to a total market default—Consequence: failure of the market—and the loss of trust.
The hollow mantras of the radical rights' call for "personal responsibility" is laughable. Where is there even one advocate of their failed theory—standing up and taking responsibility for its failure?
Really?—He's shocked that people are not just—greedy—but, that they are—shockingly greedy—when it comes to money and unregulated power. What is really shocking is his total lack of remorse, sense of shame and his utter naivete'.
And what is their behavior in the wake of the havoc they inflicted? It is to adamantly cling to their discredited theory and continue their shameful behavior and call for—more deregulation—a weaker government that will be unable to stop them—and more tax relief for "the poor overburdened job creating" plutocracy—who don't create jobs.
Add to that the disturbing trend of these, "small government, privatizing, deregulators"—who want to—"regulate,"—our sex lives—"regulate," our ability to vote—"regulate," unions and our right to bargain collectively—"regulate" our access to medical care—and "regulate" our educational choices—and the inevitable demise of this Democratic Republic—called America—is not far behind.
If Americans haven't been awakened by now—and the Republicans—either gain the Senate or the Presidency—Americans will deserve the future that befalls it come November.