Asset-backed securities for years financed consumer loans. But since the crisis began, investors have been unwilling to buy these securities, making it hard for lenders to make new loans to consumers. The government is stepping in to spark the market.
SOURCE: Staff reports | By Brenna Maloney And Laura Stanton - The Washington Post - March 6, 2009
U.S. to Invite The Wealthy To Invest in The Bailout Article | The government is seeking to resuscitate the nation's crippled financial system by forging an alliance with the very outfits that most benefited from the bonanza preceding the collapse of the credit markets: hedge funds and private-equity firms.