the more dogmatic defenders of free markets tell no longer seem so plausible, in three ways:
1. Capitalism is not as stable and self-sustaining as it seems. It needs the state to step in sometimes to protect it. 2. The big wages of some hedge fund managers and bank bosses are not a reward for great skill in judging risks, but are instead just luck; if you stand where money is flying around, some will stick to you. Indeed, what stands out from Hedge Fund Research’s data is that, even before this year’s troubles, many funds did worse than cash; as Pommygranate says, they’re just fee machines.
3. The “stand on you own two feet” attitude is markedly absent. Everyone seems keen to blame someone else: ratings agencies, excessively cautious banks, freak events, whatever. Few are saying: “yup, I lost money; it’s my own fault.” The personal responsibility so beloved of rightist commentators when they write about sink estates seems lacking in the City too.
