[watwut]

That is what insurance was supposed to be for and it was up to 250000. Anything above that was supposed to be returned from sold assets. When assets are not enough, those money would be lost.

There are literal products to insure money in excess of 250000. But people who are getting bailout now were not using those products. They were not paying for insurance in excess of that.

The system did not worked purely as designed. The system socialized loses of well connected rich people.