I agreed with you in part. Now we must part company.
In a liberal market economy failure is allowed and keeps
it honest between the contenders and pretenders. However,
socialist programs are a monopoly, so we have no point
of reference. We only realize their utter failure when it is too late.
Remember government rewards failure with a bigger budget, i.e. higher taxes.
You're point about the self-correcting feature of capitalism is well-taken - which is one of the reasons I am a capitalist rather than a socialist.
However dramatic business cycles are part of capitalism and George Soros - among others - argues against its inherent stability. And there are plenty of modern examples of great falls with huge consequences. So one can say the self-correcting feature is far from perfect.
Also, while it is true that socialistic endeavors can have plenty of adverse consequences, they can also work very well - and have in areas that for one reason or another are not suited to the capitalist approach.
I realize that we are both speaking in short-hard due to limitations of space and time. I hope I've been successful in making myself clear.