It's become an article of faith among lots of people that recent events prove (or at least suggest) that markets don't work very well.See also Robert Higgs at The Beacon:
Let's assume -- contrary to what my assessment of the evidence tells me -- that the housing bubble and its crash, along with the current ills suffered by Detroit and other sectors, are exclusively the fault of the market. . .
But despite the current downturn, the market continues to work well in its typical silence. Do you have trouble today finding gasoline to buy? Are your local supermarket's shelves not stocked with food, wine, and (watch for it soon!) Easter candy? If your cat eats your socks, will you have trouble buying several new pair? If your car's battery dies this afternoon, must you resort to bicycling or public transportation because you can't replace your dead battery? If you're bored this evening with nothing to do, is there no movie you can go to or no DVD you can rent? If you miss your mom in Minneapolis or your boyfriend in Boston, can you not call them on your cell-phone -- or even buy a plane ticket and go visit them?
[H]ow often do we pause to reflect on the near-miraculousness of this manner of living? Fresh fruits delivered in the middle of winter even to remote places all over this country! Who arranges this vast and complex distribution so successfully? How is it even possible to organize all the people who had to cooperate peacefully in order to make my splendid dessert possible. I have no idea who planted the fruit trees, tended them for years until they matured, picked the fruit, packaged and transported it through successive stages until it was ultimately placed on display in the grocery store I patronize. Of course, every one of these unknown people had to have the cooperation, directly or indirectly, of thousands of others, who manufactured the equipment and materials they used, produced the necessary fuels and lubricants, kept the accounts, insured the properties, arranged the payments, and so on and on and on.(via Carpe Diem)