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

To: JDN who wrote (692656)	7/19/2005 1:13:56 PM
From: DuckTapeSunroof	Respond to of 769670

It was 'under' Reagan and Bush I primarily. The rules change which created the problem happened in Reagan's first term. (It was during the first Reagan term when Congress revised long-standing regulations controling what sort of investments S&Ls were allowed to make. Previously, they were mostly mortgage lenders, but after the rules were changed they moved into many high risk investments --- Michael Milkin & his team sold then hundreds of billions in junk bonds, for example --- S&L executives began paying themselves with much more extravagant compensation packages [more like the commercial bankers they had always envied], and then the S&L bust happened... transfering 1/2 TRILLION in debt to the taxpayers.) It was likely the largest financial scandal of the century... and taxpayers will still be paying off the debt for decades more. Meanwhile, of course, interest continues to accumulate on the national debt run up to pay for the losses.