The economy is very intertwined, with the banks at the centre.
If they start to go down - everything starts to do down.
It's as factual as saying if you choke and engine of oxygen, that it will stop burning.
It's simple cause and effect.
Yes - we understand very well the long-long term moral dilemma of 'too big to fail' - this is a well known issue.
And as I mentioned it was 'viciously unfair' - by the way - when the Fed absorbed those mortgages, they were saving millions of American homeowners as well.
A 'market correction' would have implied massive foreclosure across the US.
The 'winners' of the bailout were Banks AND those who owned homes. ALL American home values were propped up.
the 'losers' of the action were non-property owners.
'The more debt' people were carrying, specifically, 'mortgage debt' - the 'more free money' got from the Feds actions.