Financial Weapon of Mass Destruction

What does it take to break this system that keeps bailing out insolvent banks, insolvent insurance companies like AIG, obsolete and mismanaged manufacturers like GM, GMAC, and Chrysler, or states like California, one that offers entitlements which costs are equal to a 15-30% tax increase during a depression (regardless of what you say we are in a mini depression, the jobless rate is misrepresented) and investment firms that do things like conspire with foreign governments to cover up their insolvency and add up unseen liabilities in the form of derivatives?