WALL STREET BLUES

The United States banks were giving out loans that could help people with bad or no credit to help them buy a house. This loan is called subprime mortgages ,it was because of these the United States banks were going into a financial crisis. George.W.Bush even said that they were going into a financial crisis. Then the government tried to fix the situation by giving the banks more money and the government gave the banks 200 billion dollars not each just splitting it with all the banks in the United States. Also some of the money was split to the American International Group (AIG) about 85 billion was given to this group to keep that from falling.
Then the federal National Mortgage Association and the Home Loan Mortgage Corporation were on the brink of failing because of all the bad loans they were carrying so they pretty much had a stake in almost half of all U.S loans. Later the government couldn’t let these two companies fail so they poured in 200 billion dollars into that. The United States treasury secretary asked the federal government to give him 700 billion dollars to rescue the troubled banks. He would use that money to buy up the bad loans, then work with the borrowers to get repaid.