There may never have been a mortgage bond default - but there certainly have been numerous bank defaults/bankruptcies. Scaled to GDP, Denmark's version of TARP was even larger than the US's. It doesn't mean much to say the bonds haven't defaulted when the banks backstopping them have been repeatedly bailed out, and it certainly invalidates the "no backstop" claim.
not taking the bait. there's a whole lot of bait in your comment... perhaps the person who wrote those words might debate with you.... one thing is certain.... no matter who won the election, the country was already sunk into just under 2 trillion dollars debt..... remember the budget line item for the ongoing war effort was zero, allowing for unlimited debt to be incurred and no accountability for costs, which added to the deficit ongoing. no matter who won the election, they were handed the worse depression era scenario known to modern American history, socialist (as you claim) or otherwise (capitalist, conservatist, or any other "ist") no matter who won... the only play that anyone had left was to add to the debt to get in front of it and reverse it, as all demand for products, services, wages, labor, commerce had stopped.... ignoring those facts leads to conclusions like the one that you wrote... but then again, who cares for reality, just whatever makes one's viewpoints stand. right?