As you know it, today, it would. Banks have been an evolving institution side by side with our very politics and culture since the 1700s. If they weren't bailed out, they would have collapsed. Should they have collapsed, the very way the country is run would have been jepordized. Yes, it's safe to say that life as you know it today would pretty much come to an end.
Why? Perhaps you should stop being so quick to jump the gun and read up on what you're talking about: the relationship of credit and debt, and how the modern financial system actually creates its wealth and indeed, functions.
All these simplistic problems which you have (somewhat obscurely) managed to conclude are nevertheless central issues and as such regulation would go a long way to help prevent these issues in the future.
And now, I don't wish to sound rude but you really are boring me and I hate repeating myself.
Debt doesnt create wealth, it in fact is erodes wealth for the masses, debt is pay for by future wealth.