The Treasuryâs decision to give the Federal Reserve and the Federal Government more power is evidence of their next large step into moral decadence. What a disaster. This brings us that much closer to the nationalization of our banking, mortgage, and insurance industries. Why donât people realize that what we need is LESS regulation and not more? Government intervention is not the solution â it is the problem. They can ONLY make things worse with all of our tax dollars. To fully comprehend the current turmoil, one must have a clear understanding of the role of the Federal Reserve and the clear moral hazard their spastic policies create. Moral hazard is a situation created when a party is protected from risk and thus behaves much differently than it would if it were fully exposed. The moral hazard created by the Federal Reserve policies of bailout is enough to send our country down a slippery slope of economic subjugation. The Fed was idyllically created to promote price stability, prevent financial panics, and smooth out the amplitude of the business cycle. Ironically, and unbeknownst to most Americans, it is Fed policy which is enormously responsible for the boom and bust economic metric. Interest rate reductions, money supply manipulation, currency intervention, and interference in the private sector are not the marks of a free market economy. The Fedâs mandate is not to bailout the freaky risk takers on Wall Street and beyond. The Fed needs to get out of the way and let banks, hedge funds and mortgage firms to fail. Thatâs called free market capitalism and itâs the only truly âfairâ economic policy. What we are witnessing today is radical fiscal and monetary socialism. Only a hands-off approach will encourage big business CEOâs to self-regulate and take personal responsibility for their firmâs actions.