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Politics : PRESIDENT GEORGE W. BUSH
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To: DavesM who wrote (282250)7/31/2002 11:48:23 AM
From: DuckTapeSunroof  Read Replies (3) of 769670
 
Re: "First of all, I may be wrong, but I don't believe that the S&L's were covered by FDIC."

>>> Wrong. They were part of the FDIC system.

Re: "Second, while depositors were made whole (in Federally chartered S&L's) stockholders (of S&L stock) were not."

>>> So what? They still used over 1/2 Trillion dollars (the public's money) to bail out millionaires and multi-millionaires who always knew that their deposits weren't insured beyond $100,000. Taxpayers will still be paying down that debt for generations more.

>>> I repeat: if the public is going to commit an act of National Industrial Policy by rescuing failed investments, then I want mine too! What's different between that and bailing out the dot com or telecom investments?

Re: "Third, the banking system would have probably failed, if the Government hadn't made an attempt to protect large depositors."

>>> The S&L system DID fail. It was recapitalized and bailed out by the taxpayers. Only the cost would have been MUCH LESS if the banks had only paid off what they were legally required to do... which was $100,000 per depositor's account. That wouldn't have hurt the S&Ls any... in fact it would have strengthened their position because they would have conserved capital, and so they would have been more attractive to other firms to acquire.

>>> I repeat: why should fatcat millionaires be bailed out of failed investments by taxpayer money?

>>> It was the greatest public disgrace, the greatest raid on the Treasury, of the second half of the 20th. Century.
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