Basically what you are saying is that the people that took the risk should also take the hit, which seen from a moral standpoint is obviously right. The problem

Basically what you are saying is that the people that took the risk should also take the hit, which seen from a moral standpoint is obviously right. The problem with this approach though is that the financial markets are notoriously non-transparent and full of feedback loops. This means that the blow will hit a lot of people that didn't take risks, but just happen to be in a bad spot, for instance a young family of blue collar workers that have just bought their first house. They have not had the potential upside, but they will get the downside. This is why government intervenes, not to save the risk-takers.