George, you claim that "Capitalism has always depended on state patronage" but other than the current crisis to which you refer, the pretty unique state bail out of banks you don't really give any other justification for your assertion.

The credit crisis had its origins in sub prime lending, arguably a socialist creation, started by the Carter administration in the US and probably well meaning. It gave mortgages to people who couldn't afford one, and as it has now transpired would never actually be able to pay it back. The practice spread more widely to banks and other institutions, to name one, Northern Rock and whose watch did this occur under? Yes, New Labour's.

It was Gordon Brown, Who, as chancellor created the tripartite regulatory system which patently failed to spot what was going on. By taking regulation out of the hands of the Bank of England, who had done the job largely successively for over 300 years responsible capitalism was replaced with irresponsible capitalism. He recklessly allowed an assest boom to spiral out of control under the illusion of economic growth and the "abolition of boom and bust", shooting down anyone who dared to criticise and point out that it would all end in tears, most notably Vince Cable and Howard Flight.

I disagree with Heffer, we are not returning to business as usual by any means, particluarly as Alistair Darling is asking banks to increase lending on the one hand whilst simultaneously urging them to set aside capital to build up their balance sheets on the other. Just a little contradictory! I refer you to the excellent economic commentator John Redwood

http://www.johnredwoodsdiary.com/2009/08/05/too-few-banks-too-many-losses/

With a chunk of the financial system under state ownership we are definitely in uncharted waters but based on the events of the last few of years and the regulatory failures Labour has presided over I think to pronounce capitalism as being "always under state patronage" as a bit premature.