ratbastid

This thread is a result of my reading the "which party is more likely to reduce spending" thread. This isn't an attack on any ideology or individual--I'm actually really curious about this, and I'm looking for understanding on something.

As I understand Libertarianism, the basic principles are a small, limited government, and as much personal liberty as possible. A Libertarian relies on the free markets to do what is in the best interest of the public, the consumers.

I guess the first question is: is that an accurate thumbnail of the Libertarian view? What would you add/remove/correct?

The second question is: What makes a Libertarian trust the free market when what we get over and over again from the free market is companies screwing the little guy in the name of profits? Enron was far and away the most flagrant of these, but it happens in lots of little ways in many more companies. It seems naive to me to believe that the Smith's "invisible hand" really guides companies to do what's best for the world--we have plenty of evidence that the opposite is the case. Companies pollute, cheat, manipulate, and steal. So the question is: what am I missing here that has Libertarians have such faith in the free market?