"Do you think the govt needs to intervene when markets fail"?
In many cases it was the central government's intervention that caused the markets to fail. Monopolies are never okay which is why we need to keep the central government out of regulated free market only the government can create and/or approve a monopoly. 
The government is too big, because they are in areas where they do not belong. Right now government is unable to fix any problems because right now, they are the problem.