The US Savings and Loan Crisis

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Mandatory reading actually...

The scary bit is that todays sub-prime mortgage scandal starts to resemble strikingly to what went on about 20 years ago. Both times under administration of the Bush family as well.

FDIC: The S&L Crisis: A Chrono-Bibliography
The Bush family and the S&L (Savings and Loan) Scandal

Politics aside (thank god nobody can accuse me of having voted for that man), there are huge repercussions in the making. This scandal has led into the recession that lasted from 1989 - 1992. It was brutal. Home prices fell by 40% and the economy took a serious diver. Cash was king back then.

Chances are that in order to fight the election in a favorable climate, the government may make considerable efforts in postponing the inevitable consequences---which will exacerbate the backlash. Only that this time round there is also an energy crisis at hand.

Interesting times indeed.

FYI - people who know me generally class me as an optimist. I don't want to scare you with the bear case.