why is the government “bailing out” these financial institutions rather than helping homeowners in foreclosure?

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why didn’t/don’t the government help out homeowners that were/are in foreclosure? but instead, now they are helping/”bailing out” these financial institutions that made the risky mortgage loans and have caused the housing crisis in the first place. can anyone help explain this to me?

2 Comments
  1. Reply
    muneepenee
    May 14, 2011 at 1:07 pm

    guvt thank its stuk…it gotta hav banks.
    guvt borro all the time, so it need sumwon tu bi its debt

  2. Reply
    Hanz H
    May 14, 2011 at 1:59 pm

    The government isn’t really helping out these financial institutions, when you put it that way, it really does seem that the government is awarding these guys for their incompetence and neglect. What the administration is doing is buying up all the bad assets. including toxic mortgages, from these institutions to calm the market, restore investor confidence, and start the cash flow. It just so happened that these assets are in possession of the banks and other financial institutions. The government is trying to avoid a collapse of the financial market, which is very dangerous to homeowners. When this happens, people like you and me won’t have access to credit. We won’t be able to get house school loans, etc.

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