Reply #31: Would you run that by me again? [View All]

[robdogbucky]

You actually wrote:

"Just like the Resolution Trust that made money for the government cleaning up the S&L crisis of the early '90s."

Where did you get that little gem from?

Look, I don't take sides in a situation that is so emotionally charged and has yet to be proven to be effective as the TARP program, intiated by Bush and apparently continued by Obama. But to say what you did about the RTC and the S&L crisis is just mind boggling disinformation.

To wit:

While not part of the savings and loan crisis, many other banks failed. Between 1980 and 1994 more than 1,600 banks insured by the Federal Deposit Insurance Corporation (FDIC) were closed or received FDIC financial assistance.<17>

From 1986 to 1995, the number of US federally insured savings and loans in the United States declined from 3,234 to 1,645.<8> This was primarily, but not exclusively, due to unsound real estate lending.<18> The market share of S&Ls for single family mortgage loans went from 53% in 1975 to 30% in 1990.<2> US General Accounting Office estimated cost of the crisis to around USD $160.1 billion, about $124.6 billion of which was directly paid for by the US government from 1986 to 1996.<1> That figure does not include thrift insurance funds used before 1986 or after 1996. It also does not include state run thrift insurance funds or state bailouts.

The US government ultimately appropriated 105 billion dollars to resolve the crisis. After banks repaid loans through various procedures, there was a net loss to taxpayers of approximately $124 billion dollars by the end of 1999.<19> The concomitant slowdown in the finance industry and the real estate market may have been a contributing cause of the 1990–1991 economic recession. Between 1986 and 1991, the number of new homes constructed dropped from 1.8 to 1 million, the lowest rate since World War II. <2>

Some commentators believe that a taxpayer-funded government bailout related to mortgages during the savings and loan crisis may have created a moral hazard and acted as encouragement to lenders to make similar higher risk loans during the 2007 subprime mortgage financial crisis.

http://en.wikipedia.org/wiki/Savings_and_loan_crisis


Having worked for the RTC in the early 90s I call that statement you wrote complete bullshit. There was a "Net loss to taxpayers of approximately $124 bullion dollars...." as cited in the above-excerpt. That does not mention losses by individual states that also bailed out some institutions. What are you thinking?

The Obama proponents just lose all credibility with stuff like that. I voted for him while holding my nose on Afghanistan, etc. It may work for some low information demographic, but don't assume that is what you are preaching to here. I support his efforts in the main, but he needs to pick other players to perform his magic, not the same old snake oil salesmen from Wall St.

Please try to frame your propaganda in more believable terms. It is more effective that way.




Just my dos centavos


robdogbucky