>People installed governments to protect their individual rights.
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>Traditionally it is said that the purpose of Government is to maintain security and public order. Hobbes said that people bow to Government because submission is preferable to anarchy. But that may not hold if the system starts letting down large chunks of society. Anarchy (or at least the common understanding of it) may seem preferable for such people, especially if they are strong and/or organized. So, IMHO there is an important role for Government in resolving the current crisis.

Security and public order are very important for individual rights so I don't see any contradictions. I am glad that you know Hobbes, but it is beyond me why it should be related to our discussion. It is more important what you and me think about the issue, and not what Hobbes said, right? After getting this guy Hobbes out of nowhere you went straight to the 'crisis'. It can move our exchange to very different, economic ground. I don't mind it we continue there, i.e. animal topic is over.
Economic theory is very much connected to politics, exactly through government role. The bigger role, the more politics. Getting into political discussion is rarely productive, therefore I would venture to look at the problem from pragmatic side (quite a turn, because you used pragmatic approach at some point). Looking at modern economic history one would be hard-pressed to find a good example, (i.e. similar in size and achieved success) of government intervention displayed now. There are also many examples of government playing highly negative role in economic development, and many of these developments had similarities in size with current programs. It indicates, imho, that current crisis would be resolved successfully largely despite of the government, not because of it. Please note, that I don't say that crisis will be resolved successfully. I say that the opportunity still exists and government invervention does not improve its chances.