Free markets. Are they really free? Exploring.

It drew my attention, the statement, of a probably well known figure in the financial circles, which my meager knowledge of the subject, failed me, that the free market will work out a solution as it was announced in that BBC News article that Markets rattled by bank worries

"Markets worldwide recorded heavy losses in reaction to the emergency bailout of US investment bank Bear Stearns over the weekend."

and its imminent recession in U.S. economy and its subsequent adverse impact in the world economy at large.

The plea(?) to the forces prevalent in the free market were suggestive, or at least that is how it was impressed on me, of chaotic dynamics. Motions, in that case financial economic, unleashed in the phase space comprised by all existing economic states in U.S. and in world economies involved, as well as all sectors of economic activity and the lives of countless individuals, directly or indirectly involved.

An enormous phase space where chaotic motions frantically seek the stability of desperately sought attractors. The question is? Are all the potentialities in phase space open to explore or not? Or, is it the case that only a very small part of the phase space is actually utilised? Available to be explored.

And goes on. Is it actually a free market, or a market that is tightly confined by prohibitive parametres. If it is totally free, phase space exploration will eventually lead to a safe haven that is so eagerly in searched of. But if they are not, if the current parametres, the tariffs, economic rules and regulations, protectionism interventionism or any other imposed measure, effectively curbs the economic activity flow, chaotic motions will suffocate as there is not, adequate and sufficient phase space to unfold into. In the ever parameter-diminished constricted phase space.