OK let's extend the analogy. A government agency shows up and, with military-like efficiency, takes everything you have: your cash, your house, your other car,

OK let's extend the analogy. A government agency shows up and, with military-like efficiency, takes everything you have: your cash, your house, your other car, etc. It liquidates it all and uses that to pay back your cousins. You are now bankrupt. The money does't quite fully cover your cousin's loans. They and many other cousins are now threatening to call all their loans made to other family members, which could lead to more bankruptcies. The government makes the special decision to pay them back in full. To do this, it takes money from an insurance fund that all the borrowers in your family have been paying into all along for exactly this purpose. You are left with nothing, but some of your other cousins whine that you got a "bailout".