Stephen LeRoy
Stephen LeRoy, professor emeritus at the University of California, Santa Barbara, and a visiting scholar at the Federal Reserve Bank of San Francisco, offered a critique of the Invisible Hand:
The single most important proposition in economic theory, first stated by Adam Smith, is that competitive markets do a good job allocating resources. (...) The financial crisis has spurred a debate about the proper balance between markets and government and prompted some scholars to question whether the conditions assumed by Smith...are accurate for modern economies.
Among the conditions that were assumed, and which have since fallen into question, are that information asymmetries, incentive distortions, and the failure of government regulators to serve as a check.
Read more about this topic: Invisible Hand, Criticisms