Socialism bailing out capitalism? (The Federal Reserve and the Banking problems)

Hey Grizz Let me preface this by saying that I am not an expert on economics and I haven't read the whole thread yet.However, I do have a question.If one of the government's roles is to "keep the economy healthy" and one of the ways in which it does so is by occasionally bailing out a failed company (using taxpayer money), then would it be fair to say that the government should have as much say in the regulation of businesses as is required to avoid such expensive bail outs and other potential economic disasters?I do understand some of the complexities involved in the economic world and I also understand that tighter regulation, especially now in the face of huge competitors such as China, India, et al, might cause many corporations to completely jump ship and that the answers are not simple. The monster has been created. How do you propose we tame it?

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"You are metaphysicians. You can prove anything by metaphysics; and having done so, every metaphysician can prove every other metaphysician wrong--to his own satisfaction. You are anarchists in the realm of thought. And you are mad cosmos-makers. Each of you dwells in a cosmos of his own making, created out of his own fancies and desires. You do not know the real world in which you live, and your thinking has no place in the real world except in so far as it is phenomena of mental aberration." -The Iron Heel by Jack London"Hazards exist that are not marked" - some bar in Chelsea

Sorry it took me so long to get back to this. I don't think that is the only alternative.We could also impose larger tariffs on "American" companies who choose to outsource or otherwise move production overseas.We could also impose punitive tariffs on companies who refuse to meet certain environmental or labor standards when they choose to move their production overseas in order to avoid our (more expensive) standards.Tax breaks only hold off the inevitable loss of American jobs. They do not provide any kind of real, long-term incentive to keep jobs here and they also, at the same time, strip much needed money from the government to help those affected by corporate bankruptcy/downsizing, outsourcing, etc.States and cities often compete to offer the highest tax breaks to entice a company to relocate there, but there is no guarantee that after the tax breaks, road building, school building, downtown renovation, environmental exemptions, etc the company will stay. Some tax breaks could be used in tandem with other measures, like, say, they have to guarantee a certain amount of jobs or if they jump ship they have to pay back the amount they received in tax breaks.Yeah, it is "protectionist," but this country and others were made "great" by protectionist policies. And developing countries could also be made "great" through protectionist policies of their own (just like we had in our infancy). But those who try to do so are deemed to be hostile enemies and must be crushed.Our policies right now are still protectionist...just that we are protecting the corporations and not the workers, neither here nor elsewhere. It is a win-win for the companies and a complete and utter failure for workers.

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"You are metaphysicians. You can prove anything by metaphysics; and having done so, every metaphysician can prove every other metaphysician wrong--to his own satisfaction. You are anarchists in the realm of thought. And you are mad cosmos-makers. Each of you dwells in a cosmos of his own making, created out of his own fancies and desires. You do not know the real world in which you live, and your thinking has no place in the real world except in so far as it is phenomena of mental aberration." -The Iron Heel by Jack London"Hazards exist that are not marked" - some bar in Chelsea