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For a healthy economic society to flourish, a confidence must exist between investors and the marketplace. ... One of these flaws was the savings and loan crisis of the 1980’s. ... Deregulation has been the root of all accounting frauds. ... We will begin with the savings and loan crisis, and discuss some its predecessors that have led to the huge sinkhole that we know as a current marketplace proving that deregulation enables the accounting fraud.
The public began to question the amount of regulations placed on them by the American government in the late 1970’s and pushed for the markets to develop regulations for themselves. ... To give the playing field an equal advantage, Congress began passing legislation to deregulate the S&Ls. ... The savings and loan crisis began in the early 1980’s, as many of them were nothing more than the creative accounting that the accountants verified in the fictitious audits. This bankruptcy came when the government enabled S&L owners to loan themselves money. The same government that voted for deregulation was they same or family members of the owners in the S&Ls. ...
· Neil Bush, George Bushs son, never served time in jail for his part in running an S&L into the ground. ... as an S&L lobbyist. ... "
· The rip-off began in 1980 when the government raised the federal insurance on S&Ls from $40,000 to $100,000 even though the typical savings account was only around $6,000. ...
· James Fail invested $1000 of his own money to purchase 15 failing S&Ls. ...
· It sometimes took over 7 years to close failing S&Ls by the government
· When S&L owners who stole millions went to jail, their sentences were typically one-fifth that of the average bank robber. ...
· If the White House had stepped in and bailed out the S&Ls in 1986 instead of delaying until after the 1988 elections, the cost might have been only $20 billion.
· With the money lost from the S&L scandals, the government could have provided prenatal care for every American child for the next 2,300 years.
· With the money lost from the S&L scandals, the government could have purchased 5 million average homes.
Approximate Word count = 1778
Approximate Pages = 7.1
(250 words per page double spaced)
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