Why was New Orleans not "too big to fail"

Here is a question that haunted me last night.  Why is AIG (an insurance agency who insured repackaged mortgage securities) too big to fail, but New Orleans - once home to over a million people, now home to about 40% of that number, with out 500,000 people still unable to go back - not "too big to fail".

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Why could we cough up $85,000,000,000 overnight to keep the insurance company from losing bad debts, but we still can't figure out a way to help millions of our own citizens in New Orleans as well as rural Louisiana and Texas?  Honestly.  In fact those same insurance companies we just spent $85 Billion to cover their asses are still dragging their feet in Louisiana.

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Why is Matt Lauer talking about a fundraiser in Hollywood today instead of talking about how the feds handed out $85 BILLION to Insurance backers?  Are we really this shallow?  Does anyone give a shit who Barbara Striesand sung for last night?  Bhuler?

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One last question and then I will stop.

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Why is it okay to have the government socialize insurance (AIG), socialize secondary mortgage backers (Fredie and Fannie) and socialize investment banks (Beat Stearns), but it is "socialism" to have or even propose national health care?  Is it only "socialism" when it helps everyone, but not "socialism" when it only helps your big contributors?