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To: CalculatedRisk who wrote (53161)	2/8/2006 5:53:13 PM
From: gpowell	Respond to of 110194

But I always take exception to people that are purests and don't recognize market failures and the role of government in solving some of those failures. Purists, as you define it here, are classical liberals, generally. Classical liberalism is a view that has a lot of merit, but which ultimately rests upon a foundation of natural rights, i.e. rights derived from god. Thus, property rights, for instance, are bestowed from god and the market has no authority to trample on them. That view, ironically, suffers from the fatal conceit, in my opinion.

To: CalculatedRisk who wrote (53161)	2/9/2006 5:14:07 AM
From: Mike Johnston	Read Replies (2) \| Respond to of 110194

But I always take exception to people that are purests and don't recognize market failures and the role of government in solving some of those failures. In a free market, there is no such thing as a market failure. There is only a perception of failure, when the outcome is not what someone would wish or expect. Free market cannot fail , it just is. The exception is, of course, when there is fraud or crime being committed and that is where the government has a role. If DJIA plunged 30% tomorrow, it would not be a market failure, although it would be perceived as such by some, and calls for government intervention would mount. In that case, government intervention in itself would be a market failure, since a free market would no longer exist.