Too big to fail?

This expression was popularized in the business presses beginning in 2008 when the world economy was spiraling downward.  Bear Stearns was not allowed to fail.  Lehman Brothers was allowed to fail.  The government intervened and bailed out AIG, GM, and Chrysler.

As I continue to study "Crash Course", I find myself amazed as to the mismanagement, the greed, the union tactics, and how both the unions and management essentially killed the golden goose.  Recoginzing that there were national defense implications coupled with a potential domino effect throughout the auto industry, I am beginning to wonder whether we should have allowed both automakers to fail.  I temper this feeling with the concern as to the impact on the states of Michigan, Ohio, and others, and its citizens had GM and Chrysler been allowed to go under.  Perhaps there is a moral hazard associated with company behavior if they know that the federal government will step in and catch them from falling despite imprudent business decisions.

More later as I continue with "Crash Course".