There wouldnt be a problem if they let the free market work and the greedy risk taking bankers fail and the smaller banks pick up market share. it not the first time in history a bank has failed.
If you're running a business and you make stupid decisions you lose and your competitor picks up your customers because they didn't make silly mistakes. The govt doesn't bail you out.
Herein lies the problem. If they let those banks fail we would have taken a hit but we would have rebuilt the system and thing would be stronger going into the next cycle. Now we have incomptent bankers still in power looking to cover their own back sides unwilling to lend and all businesses suffer due to lack of credit to run day to day operation. This is what govt intervention has done. Japan went through the same thing in the 90's.
