Lets use the laymen's sniff test to figure out the level of WTF present in our system, using IndyMAC as an example.
You have all your money in an IndyMac account. They hold your mortgage. IndyMAC collapses prompting the FDIC to take them over and bail them out. What happens:
You lose at least half (probably more) of all the money you have in the bank over $100k. They get a fat bailout, so long and thanks for all the cash. You are still expected to repay your mortgage in full.
I know there's probably some logical explanation in financialese showing that this is the right outcome... But, come on, they lose your money and still demand to be repaid... WTF?!
Ok, you're confused here. Something can be an outrage, and something can cause outrage. The question "where's the outrage?" isn't "Where's waldo, see if you can spot an outrage", rather "why aren't people outraged!?".
Also, when the FDIC takes control of a bank, the shareholders of the bank are basically fucked. They lose their money, it isn't a bailout. The FDIC insures YOU against the fatcats, preventing them from blowing your money and leaving you destitute.
Finally, everyone knows that 100k is how much is ensured, and you should also know that that limit is per institution, so you can put money in 80 different banks and have 8M effectively insured.
There are all sorts of issues with the banking system, but it is fairly decent. It is certainly not some dystopia dreamed up by left wing conspiracy theorists (nor right wing, like ron paul).
You have all your money in an IndyMac account. They hold your mortgage. IndyMAC collapses prompting the FDIC to take them over and bail them out. What happens:
You lose at least half (probably more) of all the money you have in the bank over $100k. They get a fat bailout, so long and thanks for all the cash. You are still expected to repay your mortgage in full.
I know there's probably some logical explanation in financialese showing that this is the right outcome... But, come on, they lose your money and still demand to be repaid... WTF?!
There is the outrage.