All of this kind of makes me wonder whether Bear Stearns wasn't some kind of sacrificial lamb. Did government policy makers hope to convince the public that a big Wall Street firm could indeed fail? Or wouldn't be bailed out? Listen, they were buried, not bailed out.

The fact is, Bear shareholders got creamed with the $2 per share purchase price. The shareholders include all the men and women who've worked there for years, and who own roughly one-third of the firm's equity.

I applaud the Fed for backstopping the financial system and preventing a run on the whole banking sector. That's what it's there to do. Treasury Secretary Paulson said repeatedly, "The government is prepared to do what it takes to maintain the stability of our financial system." He is absolutely right. So is President Bush, who said, "We've taken strong and decisive action in challenging times," adding that "in the long run our economy is going to be fine."

While the media are trying to make pessimism our new national pastime, the president is right. The United States has faced numerous credit crunches down through the years, and the free-market economy has survived very well.

What's more, while the usual clamor for more government action is coming out of Washington, let's not forget that it's the private sector that drives our great economy toward success. Prosperity-killing actions from Washington, like tax hikes, trade protectionism or massive overregulation, would certainly stunt the long-run health of the economy.

Ultimately, market prices in the housing sector must adjust. That is the only viable solution. And while some families will be forced to become renters, other families will have a chance to purchase a new home at affordable prices. Capitalism is all about winners and losers, and it's the market that must drive the adjustment, not the government.

And for all the disappointed Bear Stearns partners out there, including the many families and friends that I know well, hold your heads up high. Better days are coming.