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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (53316)	10/27/2000 2:55:01 PM
From: American Spirit	Read Replies (3) \| Respond to of 769670

I know ALL about the history of the S+L debacle. I know what the problems were but Reagan's Garn-St germaine Act which removed all regulations and allowed the pigs to run to the public troughs was hardly a responsible solution. Nor was the latter Reagan Adm,. and Bush Adm, cover-up and refusal to act and stem the enormous losses. In fact it cost us all (yes government debt is OUR debt contrary to what Republicans think) a trillion bucks which we will be paying off for a long-long-long time. No wonder Bush had to rbeak his pledge and raise taxes, just to BEGIN paying off the enormous debt they'd created. I have spent MONTHS researching this particular issue including interviewing bankers, examienrs and regulators so don't try talking down to me Mister (Fiscally Un-) Conservative.

To: Les H who wrote (53316)	10/27/2000 6:39:26 PM
From: nihil	Read Replies (2) \| Respond to of 769670

The S&L problem was the problem that every bank faces. They borrowed short and lent long. When short-term interest rates went up (thanks to Volker) everyone disintermediated. Obviously banking cannot survive when the market is free. The S&L compounded their problem by speculating -- offering jumbos (where the interest rates weren't limited) and used the proceeds to speculate in real estate and other swindles. The free market solution would have been to let everyone strip their money from the S&L's which would have to stop lending for housing and dump their mortgages on the market. Virtually all the S&L's would have gone belly up. Small depositors would have lost money when FSLIC collapsed. Jumbo CD holders would have lost everything. The banks would have been very happy to pick up the pieces.