Every company wrapped up in subprime loans will have to take their punishment before this bad debt is flushed out of the system. Some will persevere and some will fail. Smart, well managed companies such as JPMorgan and Bank of America will feed off of those less fortunate and grow. This is the free market.

Or....

The government will prop up failed companies with poor business models with money it does not have, become the owner of many of them, and become responsible for liquidating huge amounts of unsecured debt. This, of course, calls for a large bureaucracy and new regulations that will undoubtedly remain with us long after their usefulness runs out. This isn't even socialism. Socialism is smarter than this...