Uhm, no. The point is that if they fail, it will be more than just "some people will lose their jobs", because other companies would be dragged in the fall, and the entire economy would suffer. Now I'm not even agreeing with the reasoning, but you didn't quite seem to even grasp it.
Um, no. Imagine what would happen to the economy if everybody's debt was wiped out overnight. No mortgage or credit card payments.
Plus the government still has a trillion dollars to spend.
Those 'jobless' would be working again within a couple of weeks.
All we need to do is make sure the bank directors lose all their personal assets and we've got a working plan, methinks.