All Posts Tagged With: "savings and loan crisis"
Federal Deposit Insurance: A Banking System Built on Sand
Federal deposit insurance grew out of a turbulent time in American history: the Great Depression. During two waves of bank failures in the 1930s an astonishing 9,000 banks closed and millions of depositors lost some or all of their savings. The Federal Deposit Insurance Corporation (FDIC) began operations in 1934, insuring deposit accounts up to [...]
20May2010 | Warren C. Gibson | 11 comments | ContinuedThe Subprime Crisis Shows that Government Intervenes Too Little in Financial Markets?
Start with two assumptions. No. 1: banking and financial markets are inherently unstable. No. 2: government intervention into banking and financial markets can only stabilize (never destabilize). You’ll find it easy to conclude that any period of market instability we experience, like the recent subprime-lending problem, is the market’s fault and that it could have [...]
1Oct2008 | Lawrence H. White | 0 comments | ContinuedSubprime Monetary Policy
In recent years monetary policy has been conducted so as to create an expectation that the Federal Reserve will bail out investors when asset bubbles deflate. Investors have come to bank on the Fed’s backing of risky ventures. The recent crisis in the subprime mortgage market is at least partly the outcome of this new [...]
1Nov2007 | Gerald P. O'Driscoll, Jr. | 2 comments | ContinuedMonetary-Policy Disasters of the Twentieth Century
Kirby R. Cundiff is an associate professor of finance at Northeastern State University in Tulsa, Oklahoma, and an adjunct associate professor of finance at the University of Maryland University College. The Federal Reserve System was created in 1913 and soon did what central banks almost always do: it started printing lots of money. During World [...]
1Jan2007 | Kirby R. Cundiff | 5 comments | ContinuedDeposit Insurance versus Branch Banking: The S&L Debacle
Larry Schweikart teaches history at the University of Dayton. Those of us old enough to have parents or grandparents who lived through the Great Depression have probably heard the remark that “Franklin Roosevelt saved the banking system with deposit insurance.” The purported value of federal deposit insurance for keeping banks solvent is assumed, and virtually [...]
1Jul2001 | Larry Schweikart | 1 comment | ContinuedGovernment Deposit Insurance: A Dumb Idea
A headline on an Associated Press story in mid-June read, “Doubling Deposit Insurance Opposed.” Surprisingly, the Clinton administration–which can usually be counted on to support anything that extends the reach of government–had come out against a proposal to raise the amount of bank deposits insured by the Federal Deposit Insurance Corporation from $100,000 to $200,000. [...]
1Oct2000 | Lawrence W. Reed | 0 comments | ContinuedPayback: The Conspiracy to Destroy Michael Milken and His Financial Revolution
Daniel Fischel is eminently qualified to write a book on the attack on Michael Milken and the changes he wrought in the financial world in the 1980s. Fischel is a professor of law at the University of Chicago and also an expert in finance and the securities markets. He writes fearlessly, taking politicians, journalists, judges, [...]
1Mar1996 | George C. Leef | 1 comment | Continued-
The Latest
Contraception: Insuring the Uninsurable
Update below. Controversy rages over the Obama administration’s mandate that all employers – including... Read More
The Snow Plowers’ Petition
The following might have happened in a small college town in upstate New York… In a cold and snowy... Read More
Super Bowl versus Education?
In the spirit of Super Bowl weekend I’d like to deconstruct a Facebook status update that a friend... Read More
Capitalism, Corporatism, and the Freed Market
When a front-running presidential contender tells the country that thanks to Barack Obama, “[w]e are... Read More
Creating Jobs versus Creating Value
Picking on New York Times columnist Paul Krugman is one of the largest participation sports on the Internet.... Read More
