Let’s say I open up a small factory that makes widgets. I hire a manager and regular employees. The employees decide they won’t work unless I pay them more, so they strike. My manager agrees to their demands so that the factory stays open and he can keep his job, but now my company is losing money. I try building cheaper, lower quality widgets to save money, but nobody wants to buy them, and I am still in the red. I take out loans to try to save my business, but that only delays the inevitable. On the brink of bankruptcy, I ask you, the tax payer, to give me a loan, so that my employees don’t lose their jobs. It’s not my fault my business is failing, my manager made the agreement, not me, so you have to help me. Then the government should make a law that holds the manager I hired accountable for his poor judgment. It is the federal government’s job to take responsibility for my company, not mine.

As for securitized mortgages, brokers were able to make the initial bad loans because investors wanted to buy those loans in a securitized package. These investors thought putting their money in American home loans was a safe investment. They were wrong. So we, the American people, say it’s ok, we’ll take care of the mess you made of things, don’t worry about it. You don’t have to go broke after making bad investment decisions, because Uncle Sam is here to bail you out.