Aubie Baltin

Credit Market Mayhem and the S&L Crisis: Drawing Parallels

It is unfortunate that We Never Seem To LEARN:always confusing cause and effect. In so doing we never discover the real culprits and therefor, we never find out the real causes and so the stage is always set for a repeat of the exact same crisis some 15 to 20 years hence.
CONGRESS is already holding hearings in an attempt to asses blame and divert attention away from the real culprits; Congress itself.
Both during the S&L debacle as well as today It was Congress the President and the FED that basically coerced the mortgage lenders to make those ridiculous Zero Down abnormally Low interest rates Liar loans all in the name of Fairness in achieving the American Dream (Buying Votes). To compound the error we had the illustrious Greenspan encouraging everyone to use ARM's when 5% 30 mortgages were available. The S&L problem was also caused by Congress when like today ; in the name of fairness they eliminated the Usuary Laws as well as the S&L interest rates advantage in conjunction to creating massive inflation: As they are doing today.
Until we do a proper investigation and bring the real causes to light the exact same problems will re-occure every 20 years or so until we create a Real 1930's type depression.
This leaves two questions. #1 Will we be able to avert Depression this time? and More importantly How and Who is going to investigate congress?

Dr. Aubie BaltinAubie Baltin