In a free market it would not be so easy for people to get into debt

Without the deposit guarantee it would not be possible for people to increase the money supply by taking out a mortgage, they would need to earn it (the money needed to purchase an asset) in the conventional way. Having the deposit guarantee means that it is possible for people to obviate the need to earn money, it is a form of printing wealth in that sense. The lack of a free market means that people can easily get into debt, to acquire assets.