Because the US government in charge of fixing the housing crisis just set aside $800 Billion in money we don’t have to guarantee the inflated value of toilet paper in the form of $5 Trillion in mortgages.
Do the math, and you could say they expect up to 1/5 of the mortgages they own to fail, but that’s okay, the US taxpayer will guarantee them anyway.
Congrats, we are now on the hook for reckless investments into subprime mortgages by F&F’s biggest investor – China.