Bailouts are needed because there was no regulation.
They simply did not have any liquidity to adjust to short term needs.
People don’t know who is offering them Mortgages.
These guys are.
Yet when they do not follow traditional banking guidelines, they go out of business and millions who thought that they were taking out loans like people TRADIONALLY do are now going to be wiped out.
This protects everyone.
If they are going to act like Banks, they should follow the same guidelines or find some other business.
Why give them money?
Can’t the government do to them the same thing they did to Chrysler in the early 1980’s?
IE - give them a low-interest government loan and then have them pay it back over time.