Typical of the reaction to the announced "RTC" plan are these sound-bytes from Mish Shedlock
-- US Taxpayer: A Giant Dumpster For Illiquid Assets
-- Weep For The Free Market
The alternative to the plan is depression or worse (everyone agrees*). The free-market religionistas say a depression, to weed out the bad apples via free market mechanisms, it the thing to do. Bring it on!
This is not the 19th century. The world is interconnected in ways unimagined even 10 years ago. The financial industry backstops everything. The idea of "let it fall" is stupid at best.
* Everyone also agrees that this plan, and possibly other recent efforts by fed/tres, have a decent probability of actually making money for taxpayers.