S & L Hell

The most remarkable thing about the collapse of the savings and loan industry is that so many of the major participants--the regulators politicians and S&L operators themselves--chose to do nothing as they watched problems mount and taxpayer liabilities grow. That choice was dictated by a variety of motives: greed political self-interest and even (sometimes) misguided good intentions. Whatever the motives this collective interest in hiding the debacle made it certain that the industry''s final fall would come with an enormous bang one that would force administrations that professed a free market philosophy essentially to nationalize a majority of the nation''s thrifts. As a result the industry in many respects became one of the best examples of socialism in the U.S. economy.