4. What role did the Federal Reserve play when Bear Stearns was in financial trouble? What did they do they seemed unusual?5. What role did the Treasury Department play when Bear Stearns was in financial trouble? 6. What is systemic risk? What is moral hazard? Explain them both and they role each of them played in the meltdown. 7. Free market capitalism dictates that markets create efficient solutions and that businesses that fail should be left to fail. Treasury Secretary Henry Paulson was so concerned about moral hazard after helping Bear Stearns. Why was Paulson so concerned about moral hazard - explain how it related to the meltdown. 8. The video followed people who took out mortgages that they could not afford in the hopes that their home values would increase, and they would become wealthy. Were banks incentivized to give out these bad loans? How so?