Bailouts don't make economic sense

Smaller, more prudent banks should be buying up failed companies' assets and gaining market shares when a financial crisis bankrupts big banks. But as usual, people will ask for bailouts because the world is going to end. 

Fact: Prior to the 2008 crisis, there were more than 7,000 commercial banks in the US. So the world isn't going to end when the big banks fail. It just means that the services will be done by someone else. This is what happens in sound economies throughout history.

One hundred big banks could go, warns McKinsey:
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10431438/One-hundred-big-banks-could-go-warns-McKinsey.html