Abstract:
The economic crash with its bailouts and bankruptcies, led to hundreds of thousands losing their jobs and homes. Time, tax cuts and other economic stimulus programs along with the experiment the Federal Reserve was trying to implement of a zero interest rate policy and bond-buying program has led to small increments of progress of economic recovery. 2008 was one of the worst times for mortgage backed securities because it was being compared to stocks as how risky they were if not more riskier than stocks. It became a domino effect all throughout the U.S. with more and more people defaulting on their loans. The U.S. became the land of foreclosures. With all of the foreclosures happening and nobody being able to buy these homes it was a nightmare for investors in these pools of mortgages.
