Yes. Then the government would bail out the banks. The executives that authorised those loans would have to leave (with a huge severance) while the politicians who facilitated that rescue would end up on some well-paid advisory board.

The taxpayers, of course, foot the bill. Get a dollar, lose two.

Yes.

The illusion of wealth granting so much unjustified power would disappear. The spell would be broken. This is called “reality.”