Don't blame free markets for the current panic

Reason explains a world without government intervention:

In Libertarian Land, government would not promote increased home ownership, so it would not have created Fannie Mae and Freddie Mac, or encouraged these institutions to extend subprime loans, or implicitly promised to bail them out if or when these loans failed. Thus a key ingredient in the recent financial turbulence would not have arisen.

In Libertarian Land, government would not protect private agents from the downsides of their risky decisions. This means no rescues or bailouts for banks, airlines, or car companies. No deposit insurance, no pension benefit guarantees, and so on.

In Libertarian Land no one is lending you money for a house with no money down.