Firstly, most common standards for gauging market failure and inefficiency are based on static, institution-less Paretian general equilibrium and/or social choi

Firstly, most common standards for gauging market failure and inefficiency are based on static, institution-less Paretian general equilibrium and/or social choice models that require interpersonal utility comparisons, among other things. The public choice and Virginia school of political economy have critiqued those. More broadly, the subject of dynamic market process has been explored by Roy Cordato, Gerald P O'Driscoll and Mario Rizzo (The Economics of Time and Ignorance), Israel Kirzner and other later Austrian School authors. I already listed you three authors about banking and finance. More broadly, we already live in the system that you advocate, and it does not work.