The first few presidents of the United States left the left the presidency in debt. It used to be that the responsibility of paying for the house hold help in the White House used to be the responsibility of the sitting president. It used to be that every party hosted by the a sitting president was paid by the personal finances of the president. Thomas Jefferson and James Madison left the presidency poorer than when they where elected. Over the course of American history that has changed, today a president is expected to be much more wealthier than when he came into the presidency. For example, the Clinton Foundation manages over $200 million dollars.
Aside from the personal finances of the an former president. While in office, a sitting office makes use or a large amount of money for his house hold expenses at the White House. Aside from his security detail, the President employees a large staff that tends to his personal needs. There is an official White House chef and full kitchen staff and wait service, there is a personal doctors, there is vast amount of personal assistants. It is a state secret how much money is spent for the personal expense of the President but some have estimated that the White House spends as much as $1 billion dollars for the upkeep of the president and his family.
I can’t say if the federal government is too big to fail, but a current job post at the White House was recently filled that made me question the size and use of federal monies. President Obama just appointed a White House Social Secretary, a job that comes with a six figure salary and full federal health care and benefits, and maybe even a book deal at the end of it.