The lodging breakdown 10 years back is an incredible case for your inquiry. Countrywide was at one time the biggest home loan bank in the United States with an arrangement of $2 trillion worth of home loans at its pinnacle. Their normal home loan was $175,000. At the point when the lodging market crumple slaughtered Countrywide, the administration organized an arrangement that enabled Bank of America to advance in and get them for $4 billion - a value that was 1/500th (no grammatical error) of the estimation of the home loans in Countrywide's portfolio. After this, the administration at that point gave "too huge to fall flat" Bank of America $20 billion. That implies in the event that you had a home loan through Countrywide, Bank of America purchased your home for $350 and was then repaid for it with cash given to them by the administration. For what reason weren't the mortgage holders given that arrangement? I wager you each and every mortgage holder would have composed a check for $350 to claim their home inside and out had they been given the chance. Rather, the administration masterminded an arrangement that permitted one bank (BofA) to purchase $175,000 contracts for $350 each, AND gave them the cash to do it.

Bank of America proceeded with the terms of the first home loan, so if your home loan was for $175,000, you were relied upon to keep on making a similar installment you used to pay to Countrywide to Bank of America. That implies in the event that you made only one single installment, Bank of America had officially made a benefit on your credit. It guessed simply be an adjusting rights bargain, however rather they made a progression of bookkeeping moves to viably exchange full responsibility for home loans to themselves while keeping the liabilities in a bankrupt Countrywide shell. On the off chance that you at any point asked why they were so eager to do contract alterations in the wake of lodging costs fell this is on the grounds that they couldn't have cared less… it was all free cash to them. Over that, they got the chance to discount the measure of the decrease as excused obligation, despite the fact that they weren't the originator of the credit and never lost a penny.

This is a case of corporate welfare, where the administration offers cash to an organization that did not procure it, AND gives them a can't pass bargain that nobody else is permitted to have.