It started in May of 1984 when Continental Illinois Bank failed. And was rescued. People were saved from having made a bad investment. So much for moral hazard- the idea that investing is a risk, which has evolved to be not the case in “too big to fail” companies.
We know what happened. More and more bailouts and support of companies that should have gone belly up, with the investors losing money and remaining assets and capital being reallocated to productive uses. The Federal Reserve, then, could apparently reduce the severity of or prevent recessions. Wonderful! What could go wrong?