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Financial Crisis: Then and Now

In the late 1980's, the nation weathered a financial crisis that included the failure of thousands of savings and loans. Real estate, regulation, and interest rates played a role in that crisis, just as they are playing a role in the current credit crisis. In this report, NBR correspondent Stephanie Dhue takes a closer look at the two crises and their differences and similarities.



Discuss this story on XChange - The NBR Blog.

Related NBR Stories & Links

• 03-17-08: JPMorgan Chase Buys Bear Stearns for $2.00 a Share
• 03-06-08: The Dow's Triple Digit Credit Crisis Dive
• 12-26-07: "XChange, The NBR Blog" - What Does it Take to be Financially Literate?
• 12-13-07: Homeowners Facing Foreclosure are Getting Mortgage Workouts
• 11-26-07: Credit Market Concerns Leads to a Correction

External Links/Articles*

• Cato Institute
  The Cato Institute is "a non-profit public policy research foundation" inspired by the "priciples of limited government, individual liberty, free markets and peace." This links to an article published in Regulation: The Cato Review of Business & Government. The article is titled "Lessons from the Savings and Loan Debacle."
• Competitive Enterprise Institute (CEI) (PDF Document)
  CEI is "a non-profit public policy organization dedicated to advancing the principles of free enterprise and limited government." This links to January 2, 2008 report produced by CEI titled, "The Subprime Crisis in Historical Perspective."
• Federal Deposit Insurance Corporation (FDIC)
  The FDIC "is an independent agency created by the Congress that maintains the stability and public confidence in the nation’s financial system by insuring deposits, examining and supervising financial institutions, and managing receiverships." This links to a section of the agency's website titled, "The S&L Crisis: A Chrono-Bibliography."
• Federal Reserve
  The Federal Reserve is the central bank of the United States. This links to a 1998 transcript of remarks made by then Fed Governor Susan Phillips. The remarks include a discussion of the savings and loan crisis of the 1980's. Phillips is interviewed in Stephanie Dhue's report.
• Knowledge@Wharton
  Knowledge@Wharton is the online journal published by the Wharton School of Business at the University of Pennsylvania. This links to a March 5, 2008 article titled, "Mortgage Crisis Bailout: Relief for Some, Risk for Others."
• Navigant Consulting
  Navigant Consulting is a business consulting firm headquartered in Chicago, Illinois. This links to a February 14, 2008 press release issued by the firm. The release is titled, "Subprime Mortgage Litigation Outpacing Savings-and-Loan Crisis of the Early 1990's, According to Navigant Consulting Study."

*Clicking these external links will take you off the NBR web site on PBS.org. NBR has no affiliation with these sites.