Jeffrey Lacker on - The Fed Risks Moral Hazard

Jeffrey Lacker made a speech in London about Fed's bailout of Bear Sterns. The speech has amazing clarity about financial stability and central banking. It is a must read! Since I read it on the big picture - I am linking to it there.
The Big Picture Lacker: The Fed Risks Moral Hazard

Update:

Now here is the explanation and analysis of the Fed President Jeffrey Lacker's speech by Yves Smith. This is one of the reason why I am a fan of Yves Smith!

Thats why not much to add from my side. Here is the link: naked capitalism: Should the Fed Be Independent?