I'm not sure of the actual point of this whole thread, but regular people make bad investments and get bailed out all the time: it's called bankruptcy.

Bankruptcy hurts more because no limited liability. And when the other bailouts are more like "refinancing" as the other reply points out, the institutional bailouts hurt even less.

They do all the time. Every mortgage refinance is a bailout by the same conception that you are using.

There are refinances but there is also good ol' foreclosure. How many rich financiers have actually "lost everything"?

Coperate limited liability + allowed to leverage more + your friendly competitors bail you out is a suspicious combo, even if each of those in isolation is totally fine.