Digging holes & filling them in is not particularly attractive work; hence, people will not seek it out unless they have little alternative.

Working as a lobbyist/lawyer/consultant for a government-controlled company doesn’t involve getting hot and sweaty and (strangely) can even carry high prestige.

Hence, the current bailout distorts human capital allocation much more than does the hole-digging-and-filling and is considerably worse for the long-term health of the economy.