Jrbarnes

'Regime Uncertainty' Further Delays Economic Growth

The last time the government changed the accouting rules, and, face it, the FASB changed the rules to keep the government from forcing it, they altered the rules under which the S&Ls wrote off their losses. The government dictated that the S&Ls could write them off over 20 years, without any corresponding restrictions on retained earnings. That let folks buy worthless S&Ls, obtain government guaranteed funds, and loan them out at high risk, while collecting big front end fees, which they paid out in dividends. The result - the S&L crisis and billions lost by the government.