“Markets are wise,” markets “are pregnant with information,” markets “are information personified,” “ignore market signals at your peril.” About what’s been written so far, the bet here is that no one who professes a free market lean would quibble with any of the aphorisms. It’s all basic stuff.
Which is why it’s so puzzling that accepted wisdom about markets goes out the window when financial institutions come into the picture. George W. Bush most famously (and intensely foolishly) asserted in 2008 that he believed in free markets, but that they weren’t working properly. Sorry, but markets just are. They have no ideology. They just reflect reality. Bush was the crisis back in 2008, and this is true no matter what free-market types tell you.
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