The Fed didn't buy worthless paper. Their balance sheet is guaranteed bonds, Treasuries and Agencies. They have a few billion left in the Maiden Lanes, last time I looked.
I’m sorry if you are not aware of the loans made in Arizona, California, Nevada, and Florida - for if you were aware, you’d see that making loans that could be paid back was not a requirement.
It's true, there is no guarantee a loan will be repaid or that the collateral will cover the loan after foreclosure. That being said, people who claim banks intentionally made loans they knew would default are silly.
If bankers are FREE to make loans to anyone they want, with they federal government backing up their deposits, they SURE AS HELL will make loans to EVERYONE
Baloney. The FDIC only covers the deposits when they take over the bank. You think management said, "Make bad loans so we can get taken over by the FDIC and lose our cushy jobs"? That's just silly.
“The Fed didn’t buy worthless paper.”
That, my dear, has TOTALLY DISCREDITED you. You may not (claim to) know this, but the Fed is doing just the same for WORTHLESS paper in Europe now. But feel free to ignore it all.
Why are you SO HAPPY to see this country go broke?
One could guess that you don’t really belong on this site and you’re just stirring up trouble. In fact, you’ll find PRACTICALLY NO ONE on this site that will defend the people that have brought this country to its knees as much as yourself.
So why do you insist? How many TRILLIONS of dollars of worthless loans are you willing to defend (hint, the banks are back at it), and why the hell do you not care about this country’s future?
Maybe, like many in Europe, you have no kids and just want to party until your time is up?