Markets exposed by the Eurozone crisis.

The eurozone crisis is unabating. As Merkel unflexes a bit with regard to the bigger role the ECB needs to play, response by policymakers isn't fast enough to counter the negative perceptions of the market and movements in the real economy. The markets are presenting a philosophical dillema to policymakers as to how 'fair' the market is in rewarding good or bad behaviour. While the usual 'talk' says that markets only ensure that the fittest survive, that is, bad decisions are punished and companies not satisfying market expectations should be allowed to fail. But in this crisis, the double standards of the markets have been exposed because while agitating for fiscal consolidation because markets allege governments have been spending irresponsibly, but banks have been bailed out nonetheless despite most reaching their appaling situations as a result of bad decision-making and markets have favoured such scenarios.

To some extent, this is a modern version of what Marx and Engels would refer to as a class struggle. Clearly the main street which is being forced to take in cutbacks in a crisis they didn't start, is making the loudest noise as to how unfairly market-led reforms are affecting them. My question is if markets are so concerned with punishing bad behaviour, why aren't markets pushing for the ouster and criminal punishment of the bankers behind this mess? This crisis has left the markets and capitalism exposed as to how selfish they actually are. In recent times capitalism has been made humane via the 'philanthropic' welfare state and social democracy but this crisis has exposed the true wolf being clothed under a sheep skin.