If you peel back the layers and sequence of causation, I think you'll always find that there is some government intervention that has a hand in these "market" failures. Unfortunately, I don't think capitalism can function properly in an environment that has government fiddling, which is what we're seeing. And I say that as a full free-market advocate.

Either way, government is too blame. Both for not regulating these bad things away, and also for having some hand in causing them N-levels back (you just can't see or prove this one easily). It's a nice sweet spot for governments and their officials and advocates, because they can always absolve themselves by blaming the free-market in one way or another. They do too much or do the wrong regulation, causing something "bad" in the market, and boom they blame "the market". Likewise, they put some half-assed regulations that don't do much and yet again they blame "not enough regulation". The entire thing is ridiculously circular and self-reinforcing. Almost as if it's been designed for argumentative deadlock.