as already stated, the economic impacts were larger than the money owed, and the abstract impacts are untold and likely substantial.
the 'too big to fail' paradigm was novel, and a clear abuse of their position. Most of us are upset at the fact that corporations literally held the idea of 'global financial well-being' hostage.
"Save us, if not only to save yourselves." is not anything that any corporation should ever or ever be able to say, especially to the government of an entire nation.
This sounds very truthy, but there was no market rate on the interest on loans to insolvent banks that was less than infinity%. The reason the government loaned them money was because they were completely uncreditworthy, and at those rates, they could have (and did) just invest the money in treasuries and take the favorable difference in the interest rate as a gift.
Simultaneously, we started a massive program of buying all of their shit debt at par.
Banks supply capital to firms, the government bailed them out (and the automakers) because no one else was willing to supply capital to get the economy rolling.
Where did he other half go? Not mentioned in the article. Also, that investment was paid back in grossly inflated dollars, thanks to QE.
But that doesn't stop this old sore being rolled out regularly. Who need the truth when you've got Truthiness on your side, eh?
http://www.politifact.com/new-hampshire/statements/2012/oct/...