Why not let the Fed bail out all the failing corporations, no matter what?

Question

They can generate unlimited funds and that means nothing bad can ever really happen. Maybe the Fed should just pay off the $10 trillion national debt and get it over with? Economics is easy to understand as long as their is the Fed to handle everything. Leave it to your political officials to guide you. Just keep your eye on the American Dream.

Answer 1

Giving corporations that type of safety net would allow them to be more reckless.  We should not encourage our financial institutions to be so reckless, and only reluctantly should we bail them out.