U.S. President Barack Obama greets workers during his visit to the Ford Motor Company Chicago Assembly Plant August 5, 2010. Obama used the visit to highlight the turnaround in the U.S. motor vehicle manufacturing sector in the past year. REUTERS/Jason Reed
Don’t the savers and investors suffer more loss?
Mortgage-backed Securities
http://useconomy.about.com/od/glossary/g/mortgage_securi.htm
Definition: Mortgage-backed securities are a bundle of mortgages that have been sold by banks to Fannie Mae, who then repackages them and sells them to individual investors. This allows the banks and mortgage companies to sell mortgages off, and take them off their balance sheets. This removes one constraint on banks to make sure the loans are to qualified borrowers.