bailing out corporations != Captialism LULZZZZZZZZZ
I absolutely agree, bailing out the banks and buying their giant sack of toxic waste after they made so many fraudulent loans to people they knew wouldn't be able to pay them back, then shorted the same mortgage backed securities (the very definition of fraud) is pretty ridiculous.
But there's one missing link to the puzzle. And here it is: http://news.firedoglake.com/2012/05/14/glass-steagall-or-bank-size-why-not-both-and-more/
We need to get the Glass-Steagall Act back again. If investment banks want to underwrite securities for risky investments, then fine by me. But they have no business using the Average Joe's bank account to do it. Because if those risky investments go belly up, so does Average Joe, and so does Main St.
The truth is, the financial sector knew that if a catastrophe happened, that they would get bailed out by the government. They were banking on that the whole time. It's a win-win-win for them.
Not everyone saw it coming, but a few people did. Here is what Senator Byron Dorgan (D-ND) said on the Senate floor when he explained why he would vote against the repeal of Glass-Steagall. http://www.youtube.com/watch?v=w2nZbo8SKbg
You can call me a regulation lover or whatever you want, but we learned our lesson after the Great Depression when we passed it, and we didn't have any serious problems for almost 65 years. Then less than ten years after repealing it, the shit hit the fan. In 1999, the year Glass-Steagall was repealed, subprime loans made up 5% of all housing loans. In 2008, those same risky loans made up 30% of the total loans.