No, the bailouts are directly for the borrowers. Just as bailing out an airline keeps the airline alive, not indirectly the creditors funding it. Of course the

No, the bailouts are directly for the borrowers. Just as bailing out an airline keeps the airline alive, not indirectly the creditors funding it. Of course the effect is on both but I'm avoiding definition torture. But risk externality is a good point. Maybe one that needs addressing with a return to reasonable regulation, reigning in speculation/predatory lending, Glass-Steagall etc.