When the free markets cease to determine prices, quantities, and profits, the system of Capitalism fails to function properly.  Government intervention is one way to interrupt the free markets.  The Government's role in Capitalism should be to ensure that free markets determine price and quantity.  Unfortunately, we are seeing more and more cases of the US Government intervening in ways contradictory to the Capitalist system. 

• Bail-outs disrupt Capitalism.  Especially bailouts of companies involved in Oligopolies or "cartel" like environments. The US financial system is dominated by few players with access to a disproportionate share of the world's wealth.  Government regulations created this type of environment by creating barriers to entry.  Now, we are in a catch-22 situation where these institutions that control so much money are not exposed to free markets.  A free market would let the inefficient companies fail and give rise to competitors.  We bail out Bear Stearns to drive its competitors out of the markets.  These competitors could have a product or business that is much more efficient than Bear, but we no will never know. 
  
  


• Government should not control the market price of money.  I disagree with any Federal manipulation of interest rates.  The Federal Reserve creates and destroys bubbles with its interest rate manipulation.  The availability of credit should be determined by the market...the market knows best when the market needs credit or when it should limit its access to credit.  The Fed's solution to any financial slowdown is to increase the debt load of the markets...which seems contradictory to common sense.  Slowdowns are the times when the weak players should be exposed and the strong or new competitors emerge.  Making money almost free (artificially) by dropping interest rates only prolongs the failure of weak players in the markets and encourages irresponsible borrowing.