Question/Comment: My question about the mortgage crisis is this: how exactly did the banks lose money? It seems that people who put deposits on the loans that were foreclosed upon lost their money, not the banks. The banks…

Jul 29

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Home prices slid by a steep 15.8 percent in 20 U.S. cities in May, according to the Standard & Poor's/Case-Shiller home-price index released Tuesday, offering the latest evidence of continuing struggles in the nation's housing market.

Amid a flurry of government-backed steps to fortify the U.S. economy, Fed chief Ben Bernanke told lawmakers Tuesday the economy continues to face "numerous difficulties" including turbulent financial markets, rising unemployment and housing troubles.