a closer description like this.
Bank A loan Person A 500K to buy a house.
Person A can not pay the monthly bill.
So the Bank A took over the house.
Bank A can not sell the house at reasonable price at this market because everybody is scared, while house means nothing to Bank A, it need cash to operate.
The Government come and say the government can buy the house at 300K, which may or may not good for government and people. Most reasonable people agree that the government should do sth. the only question is how good deal the government can get? 300K? 200K? Even most critical says that if the government can get a deal like Warren buffet, the government should do it, and it may actually make good money in long run.