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>>...more of the worries of a cascade being set off by defaults on mortgages and home-equity credit. Followed by a series of government bailouts to the lenders. So while the creditors have enjoyed and made fortunes off the lending boom, the taxpayers will be burdened with the cost of their actions.<<

Banks don't usually hold the mortgages any more. They package conforming loans and sell them to Gennie Mae and Freddie Mac. The packages are securitized and sold to investors, who assume the default risk.
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