Blogs » A Constitutionalist & Believer in Natural Law » What is different about the S&L Crisis and this Bank Crisis?

Subscribe


I am old enough to have been a young man during the S&L Crisis of the mid 1970’s through much of the 1980’s. Just like the current problem in banking, the savings and loans problem stemmed from greed, to much credit, and bad home and real estate mortgages.
 
The difference I see is how America is reacting to the problems and the solutions. In the 1980’s the solution was to creation of the RTC, and the cost to taxpayers ended up being $124.6 BILLION. There was no attempt to keep S & L’s open, over 1, 600 S & L’s closed forever, their few assets were sold and people in the industry find new jobs or went to jail. There was no attempt to rescue homeowners, builders, investors, real estate companies, and etc. I recall a real estate agent friend shocking me, as we drove through street after street of up scale closed houses in Houston, and told me just pick one I liked and make any reasonable offer and it would be mine. It took almost ten years for all the excess homes to be sold. And I did not help out; I already owned a nice home; I could afford in Fort Worth.
 
 I cannot find data on the cost due to the rise in unemployment. However the national highest rate for the 1980’s was almost 11 % compared to the 1930’s rate of 25.6%.
 
Now, we jump to our present day and the bank crisis. My only question is why are we not going back to format of the RTC that worked for America at relatively cheaper cost of the proposed TRILLON PLUS DOLLAR fix?