I remember soon after Lehman failed, I was at lunch with a manager at a fund of funds. She said that the bailouts forestalled Armageddon. Really, I asked? Like, REALLY?
I backed down eventually because she clearly knew more about credit markets than me and was obviously genuinely, truly rattled by the prospect of all the investment banks going down.
You see that?
Right there, where I backed down.
Right where I overlooked the conflict of interest and focused on the expertise and the fear of a friend?
THAT is regulatory capture, kids.