The banks will be allowed to do what they did in the last major stuff up back in late 1980s onwards. They made a lot of bad loans and hiked interest rates to recover their losses. That is how Paul Keating "saved" Westpac and some of the other majors (while smaller fry were simply taken over by the majors - eg Bank of Victoria).
The consumer (ie is the borrower) always pays for the mistakes of others through a disguised form of socialist subsidisation.
