The subprime mortgage crisis, the biggest financial disaster since the 1929 Wall Street crash, left many financial institutions in jeopardy. Some economists argued that the banks were too big to fail. Other economists argued that an infusion of credit and debt would exacerbate the problem. The government, the institution that would decide the fate of the banks, finallly opted to bail them out. It acquired $700 billion worth of mortgage-backed securities in 2008. The government optimistically expects these assets will rise in value. This will profit both the banks and the government itself.
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