loans and swaps on toxic assets are essentially handouts. The real market value was probably less than 10% of the collateral price. A different way to show it

loans and swaps on toxic assets are essentially handouts. The real market value was probably less than 10% of the collateral price. A different way to show it was a handout: What if the Federal Reserve gave out loans to all Americans with underwater loans (against the purchased price of the house, not current market value)? Why did the Fed give out loans to the CDS and loan holders of those very same assets? Isn't the default risk the same?