There's nothing there to disagree with. But as always, it's never quite that simple.

If a bank can't manage its loans, it deserves to fail for the reasons you point out. But do all the depositors that get wiped out "deserve" to fail? They had no voice in setting bank policy, in fact, they had no way of even determining what it was (banks, like all businesses, are notoriously stingy with evidence of their malfeasance).

We try to spread the risk of this sort of thing by using insurance, regulation, bailouts, and other methods, but that often just postpones the problem, or merely dilutes it so everyone pays a little bit of the price. The real issue is that when big corporations go under, they drag many thrifty, honest, productive and decent people down with them. Great damage can be done to an entire nation because a small group of men do something that is wrong or stupid. When some crooked businessman figures out how to short a fuse in the free market, the resulting and inevitable fire burns everybody. It happened in 2008, 1929, and in hundreds of other panics, bubbles, failures, depressions, and crashes long before there were government regulations to blame.

This problem, has no yes or no, black and white answers. Its like teenagers may have the freedom to go drag racing, if they crash and die they have no one to blame but themselves, right? But what about the little old lady and her grandchildren crossing the street who were taken out by their recklessness in the pursuit of winning, and freedom?

It is the purpose of government to at least make an effort to protect the innocent, or failing that, give them justice. The market just doesn't care.

Oh, and you should know better than to shift the blame to "liberal" schools and philosophies for turning out these vicious and unprincipled businessmen. Its the competititive management ethos that despises and ridicules the weak, who has nothing but contempt for those with no naked ambition or "business sense", and lionizes the strong and the ruthless, that mass-produces these bullies and forgives their crimes with a wink and a nudge. They played sports at reactionary schools where "Winning isn't everything, it's the only thing."

Gordon Gekko was probably not a Montessori muppet.