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Markets are not disciplined. Economist Steve Keen has proved this decisively, as have many others over the decades.
Markets are over-exuberant during good times. The private banking system creates massive amounts of new credit chasing high yields, and the speculative feedback loop inflates asset values beyond their productive capacity. Invariably growth fails to keep pace with debt obligations in some sector of the economy (often in finance because they can create their own leverage for securities and other derivatives, which all depend on continued good times). The leverage creates systemic risks, the good times can't go on forever, and down we go. Along the way, much of the capital is misallocated to speculative assets like derivatives and investment properties rather than productive enterprises.
But I digress. You'll never hear me argue that the state is great. Fuck the state. I'm not delusional about government, and I'm not delusional about the infallibility of free markets, either. It's all dogma, and I don't play that.
Unless we can eliminate all hierarchical systems, including the state but also money and property rights, there must be balance. Too much power anywhere is tyranny.