[than3]

Generally speaking, it turns into free assets. The people involved usually don't acquire the assets/associated debt without some kind of guarantee.

OneWest Bank for example after 2008 had a guarantee where if the assets defaulted above a certain amount they would receive full value of the loans in a payout from the government. They were actively foreclosing on people to justify catastrophic losses to get the bailout. Not sure how that ended up since I was only marginally aware of the start of that and everything went silent once the news got wind of the perverse incentives.

In terms of trends, the bailout game has been played consistently since the the dollar went off the gold standard (1971 iirc).

The ponzi is starting to unwind now that inflationary pressures are out of control. I expect concentration to eventually lead to nationalization followed by a new currency which will fail because they lost all credibility from their mismanagement as a private entity.

That's what's happened historically with every country that debases its store of value above the point macro effects become noticable which are around 3:1 ratio).