What about all the money made in the mortgage feeding frenzy?

Many banks and lending institutions made the original loans and money, then sold them. The government bought most and they will be the one losing money. Don't think they will lose it alone though. Taxes will help. The real money makers were the Real Estate agents. High commissions and no loss when this all goes down. Of course they aren't making much money now.

Banks aren't making any money on those bad loans they gave out. You can't collect interest when people aren't making their payments.

The people who did make money are mortgage brokers, real estate agents, and appraisers to name a few. In regards to these individuals and institutions, state governments have taken steps to prosecute mortgage and appraisal fraud. By no means is anyone getting a free pass on this. Many companies who did take in an unusual amount of profits peaking in 2005 had a hand in this mess are losing money now. Not a lot of mortgage companies hiring nowadays. No one is getting a free pass here.

If you chose to swim with sharks it's best not to be a tuna!

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