For the banks, the real crutch is the mental&#x2F;precedence crutch of - buy back your equity and go back to running things as normal, and if the system fails we&#x27;ll bail you out through nationalization yet again, so for now you can continue to operate under the taxpayer-shared-risk assumption.<p>Using preferred stock was intelligent design in a micro level, but at a macro level the incentives and risk&#x2F;reward profile constructed by the bailouts and liquidity injections is completely perverse.