We can talk about a depositor bailout if you want, but let’s not pretend it’s the same thing, not pretend it’s what the term “bailout” commonly refers to.
What Is A Bailout?
A bailout is when a business, an individual, or a government provides money and/or resources (also known as a capital injection) to a failing company. These actions help to prevent the consequences of that business's potential downfall which may include bankruptcy and default on its financial obligations.
To call this action anything other than "bailout" is to mince words, plain and simple.
It’s not meaningfully a bailout. Certainly, it’s different from 2008 in an important way.
Again, we can talk about “bailing out” depositors, if you really want to use that word, but let’s not be misleading.
Even if the transaction turns out to be cash-neutral for the government - or even provides a small profit, as with TARP - it is still providing very considerable resources in the form of liquidity, coercive muscle - and sheer gravitas.
It’s not meaningfully a bailout.
Tomato, Tomah-to.
In the same ways as if you go driving cross country with inadequate money in the bank (and inadequate insurance), and then have a major breakdown -- forcing you to ask your parents or your friends to wire you money -- they are unambiguously bailing your sorry ass out, even you promise to sell your precious vinyl collection that pay them back, once you get home.
It’s embarrassing, shortsighted, and destructive.