16 Jul 2014 12:03 am
People are always looking for some rich republican dude to blame for stuff. The truth is S&L's did not go to the banks for their money. It was all deposits that they loaned. When a financial institution makes a bad investment they still have income flowing in. In the mid-80's when interest rates dropped, borrowers began going back to banks. S&L's holding toxic assets had no way to make good on the money they were "holding" for investors because they had no way to make money anymore.