Wouldn't there be a strong incentive for governments to somehow bail out banks, etc. if there was a collapse in the derivatives market?

There would a strong incentive and various goverments would bail out the banks and other financial institutions.

Remember, Neo-Liberal economic theory states goverments should not interfere in the market.  

Neo-Lib practice shows as long as companies or economic entities owned by the plutocrats are making money but immediately, or as soon as possible, support companies or economic entities owned by the plutocrats whenever there is a danger of those companies & etc going broke.  This always seems to be in "The National Interest" for some strange reason.

 

A doo run-run-run, a doo run-run