Bailout Nation ~ Who is protecting your portfolio?

Right now we are experiencing a Bailout Nation! I wanted to quickly point out that I believe that Larry Kudlow of CNBC is a joke. He screams unrelentlessly about Free Market Capitalism and then abruptly reverses course when the Federal Reserve steps in and takes action to Regulate the erratic markets at this point. I do understand that some of these companies are tooooo big to fail but isn't one of the underlying principles of free market capitalism - moral hazard. Moral hazard is knowing that you will fail if you participate in very risky activities, because no one will feel sorry for you taking those miscalculated bets.

Please pay close attention as we are entering a time when many claim they believe that the government should be hands off, however they are stretching their power to reaches never seen. The Federal Reserve and Treasury Department are taking unprecendented "predatory" acquisitions of private firms for the 'good of the people'. Well let's examine this for a second:
1. The government is not the business of taking over companies (its not even in their charters)
2. The average person is footing the bill
3. As more of this risky businesses are bought out you begin to lose sight over what requirements are used to save a company
4. Popular myth - the short sellers are not the only one's driving down the stocks of financial companies. Guess what, every time the goverment takes over a company and essentially wipes out shareholder interests (insteading of loaning them the money) this feeds the frenzy of short sellers. There is no downside risk as a shortseller
5. As you continue to the bailouts, the government's reserve of funds will continue to be depleted and that sparks more fears than even storied Wall Street franchises going under.

I want to point out that I am not anti Free Markets nor anti -government. I actually am very pro Free Markets but one the variables that has over history been a thorn in the side of Free Market Capitalism is GREED and right now you are seeing that in every facet of the investment community. Greedy consumers were taken advantage of by greedy mortgage bankers, who were fed money from greedy investment bankers and firms, who were all crushed by greedy "speculators" who are shorting the hell out of all these stocks. And I will end that the government continues to fuel this greed and transfer wealth through predatory acquisitions and non-transparent transactions such as the Bear Stearns deal.

Now I love Free Markets but we may have to all agree that some checks and balances and increased scrutiny is actually good for every...to keep the greed in line!