That's not only true but it's a reality that society's lived w/ for centuries. As a civil engineer we ran into it all the time w/ old buildings that presented a hazard to their next door neighbors and the consequence has to be either confiscating the structure or demanding a lot of remedial work. That, plus rewriting the building codes.
Bernanke said the same thing back in '08 and everyone agreed. fwiw, all the TARP funds were paid back w/ interest. What's never got paid back was the GM bailout. I'd be tempted to whine that the capitalists pay their debts and it's the laborists who cheat, steal and exploit but on the Planet Earth we need both labor and capital together and only an idiot wants a conflict.
A free market doesn’t have TARP funds at all. It doesn’t have government bailouts.
Had the free market been allowed to work, none of these big banks would exist today and we wouldn’t have this problem. The market verdict on all of them was that they were failed institutions. The government propped up these failed institutions.
And TARP just scratches the surface. The Fed’s balance sheet has expanded to $4 trillion absorbing bad loans off the books of these banks.
Central banks, bailouts, fractional reserve banking, unprosecuted fraud - none of these things are compatible with free markets.
If you are not outraged by what the Federal Reserve has done, then either you don’t really believe in free markets, or you are ignorant of the details. The latter condition can be cured by education.