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Politics : Al Gore vs George Bush: the moderate's perspective -- Ignore unavailable to you. Want to Upgrade?

To: Slugger who wrote (2579)	10/15/2000 7:06:40 PM
From: American Spirit	Respond to of 10042

This is the big one which did it and unleashed the pigs to the troughs. Never before had there been such largess granted to S+L's by the federal government. December, 1982--Garn - St. Germain Depository Institutions Act of 1982 enacted. This Reagan Administration initiative is designed to complete the process of giving expanded powers to federally chartered S&Ls and enables them to diversify their activities with the view of increasing profits. Major provisions include: elimination of deposit interest rate ceilings; elimination of the previous statutory limit on loan to value ratio; and expansion of the asset powers of federal S&Ls by permitting up to 40% of assets in commercial mortgages, up to 30% of assets in consumer loans, up to 10% of assets in commercial loans, and up to 10% of assets in commercial leases. "Elimination of loan to value ratio" was the killer for our economy. It gave fast-buck artists freedom to loan whatever they wanted to whomever they wanted for whatever they wanted. And you know what happened. Billions and billions in loans went to white collar crooks, unscrupulous real estate speculators, buddies, family members, straw men, dummy corporations, cronies - you name it. And the banks took back large fees upfront as their "vig" which they spent squandered as if there was no tomorrow. And a lot of the cash also went to politicians, especially the Sun Belt republicans who primarily made it all possible. Everything that came before this was just minor league.