I have had a spark of genius here at 12:53 at night. The approach to this financial crisis has been adequate in intention. Although it may have failed (or gone too far which I believe it has) the reason to have the government intervene in the companies was necessary. It hit me as I was thinking of how something can be too big to fail.
It is too big to fail when it becomes such a large portion of the economic pie that if it failed, or went bankrupt, the system would shut down with it. Now how can something be allowed to get that big? I don't have a clue. I'm not an expert. However history has taught me that the regulations against monopolies could be applied here.
A company in a monopoly can't be allowed to be a monopoly to protect the free market part of free market. If there is no competition, the prices go up to unreasonable prices and rely on the benevolent dictatorship of the company owners. In America that can not happen anymore. We determined it hindered freedom, and bye bye monopolies. However, just by being a large company and not being a monopoly has proven to be a hazard to our freedom.
Simply because when the companies need to be bailed out by the government we lose freedom because it is then supplied to us by the monopoly of government. The only monopoly (besides basic utilities) that is legal in this country by the Constitution. However, the monopoly of government isn't supposed to be a monopoly of the economy. The government involvement should save the companies with whatever money is necessary. Rationalize this by cutting the FEDERAL funding for schools. Get the government out of schools like it is supposed to be and fund a saving of the economy. Lovely how it is a win win.
Then, once the companies are saved with bankruptcy managed by the government (with money put in to make sure the system is preserved as long as possible to make necessary changed) then split the companies into pieces. So they operate as different companies. This way if one fails the system doesn't collapse. The monopoly isn't the only large thing that can hurt us now. We have become such a large economy that even the largest companies, if they fail, cause catastrophic damage. The process the government is going through can alter their current pattern of just nationalization to true, good intended reform of the system.