The fundamental problem with the policy response to the 2007 Financial Crisis and the 2008 Banking Crash was is was lead by central banks.  As a result, they got to choose the winners (banks, bankers and the 1%) and the losers (borrowers and the real economy).  Had politicians lead the policy response, the winners and losers would have been reversed.

How can I say this with any confidence?

Does anyone think US politicians would have voted for 10+ million foreclosures over closing JP Morgan and Goldman?