Sometimes consequences are difficult to watch or experience, but they are important. They can even be vital sometimes because consequences act as an incentive to avoid an undesirable behavior.

I definitely believe that even though it hurts sometimes, we must keep societal punishments for bad debt in place.

There is so much money chasing after investments that returns are lowered. Some people compensate by taking on riskier investments in hopes of a higher return. This behavior is only amplified when society takes away important incentives to behave responsibly (bailouts for large companies, generous bankruptcy laws, etc).