The Savings and Loan Crisis: 1986-1988. Ultimate cost $160 billion. More than 1,000 S&Ls failed, forcing a massive taxpayer bailout.
The Collapse of Long-Term Capital Management: 1998. Ultimate cost only $3.6 billion, but it did nearly pull down the global financial system.
The Credit Crisis [Name Pending]: 2007-2008. Ultimate cost - well, we're not sure yet (and that's part of the problem), but at least $197 billion ($168 billion in tax rebates and another $29 billion on the Bear Stearns bailout).
The US taxpayer is either stupid or pretty damn forgetful, that much is clear.
We pay financiers top dollar to stick our money in ultra-risky investments, then we bail them out when it all falls apart.
Moral hazard, anyone?
Monday, March 24, 2008
The Ten-Year Itch
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