Is free markets’ failure the government’s fault?

Is free markets’ failure the government’s fault?
Philly Fed boss Charles I. Plosser says government incentives, and good intentions, damage capitalism and prolong the recession
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Why would the failure (or need for government support) by Fannie or Freddie cause mortgage rates to rise?

How does that correlation work?
How do mortgage rates respond to the circumstances of Fannie and Freddie?

Bear Stearns: Nothing we could do to stop failure

Bear Stearns: Nothing we could do to stop failure
There was nothing that Bear Stearns could have done that could have prevented the company’s collapse in March 2008, a key Bear Stearns official tells a financial crisis watchdog.
Read more on Market Watch