I quite literally said in the message you're replying to "It's not clear what the better outcome is here" so I'm not really opining on what's preferable. It doesn't change the reality that this is going to impact "regular people" in the end whether it's intentional and direct in the form of a bailout, or indirect in the form of layoffs.

To your questions: The companies you'd prefer to see shut down almost certainly will outside of the zero interest rate environment we've recently excited. But there's quite a big difference between businesses running their course and dying, and them rapidly laying off employees alongside one another because they just lost much of their runway. Mass layoffs create a sudden oversupply of candidates and strain the system, making it more difficult for those laid off to find new jobs.

While I'd prefer businesses not die for "random chance" of having chosen the wrong bank, my concerns here are not for the companies themselves. I'm much more worried about the downstream impact of employees who will go without wages or systemic failures of other banks if we can't regain confidence quickly.