okay, I starting to understand this a little better. Many people were not able to pay their loans and therefore many banks failed. If the bailouts never occured, many banks would have gone bankrupt and the loans would have been sold to other banks. Why would another bank buy up defaulted loans for pennies on the dollar? Who would eventually pay off the loan? What happens if the remaining banks did not have enough money to buy up all the loans (what happens if no one wants to buy up the bad loan)? <--In the case of a bad mortgage loan, who receives the property if the bank fails?
Thanks for all your input!
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