"Does this mean the capital markets knowingly take extraordinary risks fully expecting a government bailout if they fail badly enough, but pocketing the profits

"Does this mean the capital markets knowingly take extraordinary risks fully expecting a government bailout if they fail badly enough, but pocketing the profits if luck goes their way?" No. But if you had a large sum of money in the financial system, would you have felt more secure if the government did or didn't bail out Lehman?