There are numerous historical examples, but I'll use the global financial crisis. Government deregulation (free-market) enabled investors to saturate the financial and housing markets. Profits and housing prices peaked because capitalism requires constant growth, but there wasn't any room to expand.

The government increased rates because the saturated markets imploded, causing parts of the economy to collapse, and then, they bailed out the insitutions to sustain the markets.

Throughout history, capitalist governments intervened to stabilize the economy.