Change Obama Change

President Obama promised change and we got it. We are now in crisis mode. Let's look at the financial markets in general and the banks in particular. In the 1980's there was a failure in the Savings and Loan industry. First they were deregulated and allowed to make risky real estate loans.

"L. William Seidman, former chairman of both the Federal Deposit Insurance Corporation (FDIC) and the Resolution Trust Corporation, stated, "The banking problems of the '80s and '90s came primarily, but not exclusively, from unsound real estate lending

Did you catch that last part "unsound real estate lending", has a familiar ring to it. The difference was the S&L were relatively small and so was the monitary amount 124.6 billion in comparisson to behemoths like Wells Fargo Leeman Brothers, Fannie Mae, Freddy Mac, Bank of America and many other institutions doing business over the internet and with offices across the country. What happened to the economy after the bail out? We spent the 80's and 90's recovering from staggering debt, inflation was in the double digits and we did not climb out until the middle of the Clinton administration. That was a 20 year recovery.

Now we are bailing out the banks for trillions of dollars for the same reasons. Do we not learn? It it took 20 years to recover 124.6 billion with a growing ecconomy, how long will it take to recover from trillions. It's a change worth noting.