Quite the opposite. Bankruptcy is a very capitalist notion, despite what your bank will tell you. There are several reasons why, but I will list the most simple. First, we want our money to be spread around as we purchase goods and services. This stimulates the economy. We want to purchase from a lot of different people so more people receive the benefit of that stimulus. If we are sending most of our money to one place (the bank) then the rest of the members of our economy suffer. The bank is making all of the money instead of the hardware store, the beautician, the grocery store, the gas station, etc.
Next, consider that the money going to the bank is not for products or services. The banks don’t make anything. Many of the people who come to me are paying hundreds and even thousands of dollars per month on interest alone.
Interest. This does not generate anything. This is not productive. This is what allowed Ken Lewis at Bank of America to have a $100,000,000 salary per year. That is one hundred million dollars per year. At the same time Bank of America charged $4.50 to cash a check, even if it was for $1.00.
And then, of course, we had the bailouts. The government took money from us taxpayers and handed trillions of dollars to these same banks who did not use it the way they promised. In fact, they raised banking fees to pay back the money they received from us to fix their horrible mismanagement. Never let the banks talk to you about the morals of money management.