Which be more costly, the current mortgage crisis OR the losses incurred during the Savings and Loan scandal?
Answers:
In my view the current mortgage crisis is far more costly within human terms than the S+L scandal.
One thing this current financial crisis has taught me is that associates are idiots. The S&L thing was a minor problem that cause panic. People don't understand what is really going on surrounded by the financial world, yet they bank their total life savings on it. Of course the housing open market is going to fail, when the real money have insurance on it failing 4 times over. They want it to fail. They made their money, and now they are waiting for the market to reestablish themselves, and then they will throw their money back surrounded by the kitty, and the world will operate again.
The nest egg and loan crisis of the 80s spawned the current global economic uproar. The derivatives created to soften the economic impact of the S&L crisis be not meant to be cut loose in an unregulated souk. They are the dna of the false economy.
The cost of the S&L bailout be about $160 billion, early '90s money. I'll go away it to you if you need it in 2009 dollars.
I recurrently see the figure of 2 trillion bandied about as the illusion number to fix this one. No one really knows for certain.
By my calculation, we've already exceeded that number.
Feb '08 stimulus: 168B
Fannie/Freddie: 400B
AIG: 150B
Tarp A: 350B includes auto co.s
Tarp B: 350B
Obama stimulus: 787B
Housing Plan: 75B
AIG additional: 30B
Doesn't that add up to 2.33 trillion?
Sigh...
Is it possible we are spending money that really isn't directed at solving this problem and instead promoting agendas? Source(s): http://en.wikipedia.org/wiki/Savings_and…
I think if you add up adjectives the money spent on stupid government "inquiries" that will be more than either of those.
For example:
The Kennedy Assassination
Water Gate
The Starr report
The investigation into why the Towers collapsed (duh)
The investigation into the bank failures...(too late)
Madoff (again too late)
All of these are worth while but too late (banking), going on too long (kennedy, and the Towers took 2 yrs!), not a soul "pays" for the crime (water gate, starr investigations) so what is the point? It is all newly wasted money.
Based on what I remember, I would say that this one is worse. It have affected more of the economy long occupancy. The S&L scandal kicked the heck out of the markets too, but were simpler to fix. This covers so copious different areas of graft, dishonesty, greed etc. that were not as much of an issue then.
According to Time magazine Freddie is about to dip into the trough with their 50 billion surrounded by losses last year that is going to cost the Federal administration another 150 billion minimum to bail out. Its a darn good thing Freddie and Fannie didnt entail that oversight the Dems fought so hard to keep away!
BTW yes i consider the Republicans lately as guilty on this as the Dems. They sat by and watched after mortal bought off but it was the Dems that forced this one us.
both are tiny compared to the mess OBOMA have us in and is dragging us deeper in we will be paying for this thru adjectives the 2000's if we don't get killed by rival immigrants
Even with inflation times ten it would not even come close to this. I think it be in the 200 Billion dollar range.
No comparison - orders of enormity difference.
our loss is all that really matters immediately.... they can crunch numbers all they wish .....as may you.... but the facts are we hold been robbed no matter how it's sliced
The AIG scam and city dune group scam
The country if truth be told eventually made money on the S&L scandal.
In this current 'crisis' money is being spent that will never be seen again. (by the charge payer at least)
AIG alone has already received more funds than the government committed during the S&L crisis. Source(s): http://www.fdic.gov/
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