Pat’s Article in the Financial Times: It is crucial that we define the role of the state in the market

 The financial crisis has forced governments to re-examine the roles of the state and market. Assumptions have been tested and governments have made interventions that would have been unthinkable several years ago – buying stakes in banks (in some cases nationalising them) underwriting risk and injecting capital into money markets.

In Britain the divide between the parties has revolved around different
perceptions of the role of government in response to the crisis. New Labour
has been clear that when the system is in crisis, the state must intervene.
It was right that when we were faced with financial chaos, the government
should do what it can to stabilise the system, by taking stakes in banks or
underwriting risk. The alternative would have seen parts of the financial
system collapse leading to lost savings or credit for businesses running
dry.

The political right has been more reluctant and hesitant about
intervention, sometimes supporting it as a necessary evil, at other times
saying the recession must run its course, or after initial support quickly
denouncing government action as a failure.

You can read the full article: http://www.ft.com/cms/s/0/c4985410-2ac0-11de-8415-00144feabdc0.html