This post is a response to the question Do you think private institutions should ever see government bail-out? by @landon.bakhsh
No, I do not think that private institutions should ever be bailed out by the government. However, this is obviously a tricky topic because sometimes a government-backed guarantee is necessary. For example, would you want to put your life savings in a bank that can give you no guarantee that your money will still be there when you want it back? I think that private institutions should be required to purchase the appropriate insurance from a third party to provide this protection rather than it coming directly from the government.
As far as the 2008 Financial Crisis, I think we would have still run into the same problem if it were not for government involvement. The main problem was that mortgages were being loaned to people who simply could not afford them. There are restrictions and requirements put in place for very good reasons - this is one of them. Perhaps the companies would not have given out such risky loans if they had more independence from the government.