Am I the only one worried about the increased moral hazard the new plan by Sec. Paulson would potentlially create? The plan basically gives the Fed "official" powers (that were previously under the executive branch) to regulate and act as overseer of investment / financial institutions. Does this mean we can expect more Bera-Stearns-like bailouts in the future? What does that mean to the credibility of the Fed when they are allowed to help certain wall street financial firms under the guise of "maintaining stability?"
Should the Fed have the power to pick and choose who lives and who dies in our economy? I for one can't forsee if the Paulson plan, if enacted, would be a net positive or negative - but it does cause me some alarm to see the largest supposedly non-political institution of our government (the Fed) now being offered new discrectionary powers that could easily be corruptable.