As an independent conservative, I am usually against any plan that gives the government more power. But for some reason, this plan just makes sense.

Upcoming Treasury Department proposals to make the Federal Reserve the chief regulator of U.S. financial markets and give it sweeping new powers won praise on Saturday from the central bank and the head of the Securities and Exchange Commission.

Treasury Secretary Henry Paulson is expected to unveil a blueprint on Monday for fixing gaps in the U.S. financial market regulatory structure that have been exposed by the ongoing subprime mortgage crisis.

Lax regulation has been widely blamed for permitting a flood of inadequately documented loans to be made during the boom years of a U.S. housing market that has since soured and now threatens to drag the economy into a deep recession.

If the mortgage industry had regulated itself and brokers had denied people loans that they knew they couldn’t afford, maybe something like this wouldn’t have to be done. I think this is one exception where the government needs to step in and make sure crap like this doesn’t happen again in the future.

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