This was, in almost all aspects, extremely successful. The “run” was contained, and Mexico experienced a “V-shaped” recovery. But it did highlight the moral hazard that goes with bail-outs – it left the impression that lenders would be protected when things went wrong (see Dooley (1997)). The contrast to this is bailing-in the private sector – enforcing a stand-fast and “hair-cut”.
This not only addresses the source of the immediate problem, but it is also equitable, and directly addresses the moral hazard problem.