The term "free markets" means markets and commercial activities with few or no restrictions.
What human activity doesn't end in tragedy when human impulses are left unrestrained? (Whether you view it in terms of "original sin," human nature, or karma, unrestrained human impulses can be catastrophic.)
The US and world financial markets became ever "freer" under the policies and practices of (i) libertarian Alan Greenspan of the Federal Reserve and (ii) the GOP controlled US government during Bush II's first administration. (Not to mention the whole Reagan Revolution thing.)
Who thinks the crash of 2008 was just something that happened without cause?
Let's face it: Derivatives (and their rating scheme) operated in almost a pure "free market."
Derivatives were the direct cause of the crash of 2008.