We do children no favors by teaching them that they have a right to a favorable outcome in all that they do. It used to be the case that education was thought of not just as the acquisition of knowledge -- still less as the acquisition of credentials -- but as a form of character building. And one of the ways to build character is to submit students to the same sorts of stresses and failures that adult life does, in order to teach them how to cope with such things.
If you fail, sooner or later that failure will have to be recognized, confronted and put to rights. Not to do so in a timely fashion is only to spread the consequences of failure much more widely -- to the whole educational system in the case of the SATs and the ordinary taxpayer in the case of the bailouts. Both deserve better.