The way I see it current system is just less transparent (which is by itself not a feature). We can't measure how badly haywire current decision making system goes during financial (or other) crisis but that doesn't mean it's less correlated than a market would be.

Example: imagine making a decision while there's an angry mob outside. With bricks and all. And you, Prime Minister, are solely responsible for what happens next. If they don't like it, it's all on you. Doesn't happen in market scenario, does it?

So at precisely the moment when decision makers need the best results, their main tools would be going haywire.

And why are you assuming that currently "their main tools" go haywire less than they would with betting markets?