The government is not a private investor. That money would not have made huge returns anymore than medicare does. We _do_ gain from bailing them out - we tax

The government is not a private investor. That money would not have made huge returns anymore than medicare does. We _do_ gain from bailing them out - we tax them. We do not put business owners in jail for losing the risk game. There are plenty of corrupt governments that do the sort of things you are suggesting, such as Russia. They are not considered effective economies and their corruption ruins their ability to be functional.