THE RISE OF POLITICAL CONSERVATISM 1980 1992
PRESIDENT GEORGE HW BUSH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Tons of people were taking out loans, even people that were not financially stable.
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Tons of people took out loans because the economy was so good so almost everyone was financially stable and qualified as a borrower.
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People stopped taking out loans because the new regulations made it harder for them to qualify as a borrower.
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People stopped taking out loans because they knew the bundled loan investments seemed like a scam.
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Detailed explanation-1: -The S&L crisis culminated in the collapse of hundreds of savings & loan institutions and the insolvency of the Federal Savings and Loan Insurance Corporation, which cost taxpayers many billions of dollars and contributed to the recession of 1990–91.
Detailed explanation-2: -Deregulation in the financial industry was the primary cause of the 2008 financial crash. It allowed speculation on derivatives backed by cheap, wantonly-issued mortgages, available to even those with questionable creditworthiness.
Detailed explanation-3: -Congress passed the Depository Institutions Deregulation and Monetary Control Act in 1980, which served to deregulate financial institutions that accept deposits while strengthening the Fed’s control over monetary policy.
Detailed explanation-4: -A brief overview of insolvencies in the S&L industry between 1980 and 1982, caused by historically high interest rates, is followed by a review of the federal regulatory structure and supervisory environment for S&Ls.