Democrats: The party of Hayek?

I've always thought of F.A. Hayek as extreme libertarian dude. But this well-argued post by Lawrence Krubner, liberally larded with quotes from The Road to Serfdom, convinced me that, like Adam Smith, F.A. Hayek was a more reasonable and compassionate man than modern day Hayekians have caused me to believe. He was for the free market, but also for the "state's helping to organize a comprehensive system of social insurance" for hazards like sickness and accident. How positively Clintonian.

UPDATE: Whatever his political position, Paul Krugman thought that Hayek's economic stance was bunk. Krugman sounds convincing, but then again, he always sounds convincing, even when he's contradicting himself.