What happens is that the original bank that gives you a mortgage doesn't really care if you can pay it back or not...and since deregulating it, there's no oversight to make sure that only those who can pay back their loans get loans.

They sell the loans to FM/FM, who also don't bother checking to see if the loans they are buying will ever paid back...guess why they don't have to check anymore?

They're not too worried about it...because when the housing bubble bursts and thousands of the loans go into default, they just take the properties...but if that's not enough to get them out of trouble, then they can just rely on their buds in the government to bail them out...

...with TAXPAYER dollars...

...the same buds who deregulated them and caused this problem in the first place.

How much of the profits are spread to the taxpayers when things are good and the loans are being paid off? None, beyond the same taxes we all pay.

It's called Socialism...spread the costs to all of society.

Unfortunately, it's a special kind of Socialism...Corporate Socialism...where the costs are socialized to the taxpayer, but the benefits are kept privately by the corporate entities, and, of course, their deregulating lapdogs that they fund in Congress.

Corporate Socialism (private benefits/socialized costs) goes by another name, too...it's calld fascism.

Fish on...

Todd