President Barack Obama Message Board

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Politics : President Barack Obama

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To: sylvester80 who wrote (25791)	7/13/2008 8:38:21 PM
From: RetiredNow	Read Replies (2) of 149317

Hi Sylvestor, here's some more perspective on the S&L crisis versus the financial crisis we face now: Cost of S&L Crisis "The U.S. Savings and Loan crisis of the 1980s and 1990s was the failure of several savings and loan associations in the United States. The ultimate cost of the crisis is estimated to have totaled around USD$160.1 billion, about $124.6 billion of which was directly paid for by the U.S. government -- that is, the U.S. taxpayer, either directly or through charges on their savings and loan accounts-- [1], which contributed to the large budget deficits of the early 1990s." en.wikipedia.org Potential Cost of FreddieMac and Fannie Mae Bailout "Fannie Mae and Freddie Mac either hold or back $5.3 trillion of mortgage debt. That's about half the outstanding mortgages in the United States." apnews.myway.com If the government has to bail them out, we could end up paying 10-20% of that amount, or about $500 billion to $1 trillion, which would make it much worse than the S&L crisis. The IndyMac bailout ended up costing about $8 billion and they had assets of around $30 billion.

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