Section I. What Creature Is This? Chapter 4 Home Sweet Loan Summary and Analysis

Summary

During the Great Depression of the 1930s, the American public became interested in socialism as an alternative to capitalism. The politicians of the day picked up on this, most notably Franklin D. Roosevelt, and policies brought about a hybrid of socialism and capitalism. The trouble with this move was to abandon the free market principles that were supposed to have worked with a purely capitalistic system.

The Savings and Loan or S&L crisis of the 1980s happened because the government tried to insure the deposits, but the funds to do this were not adequate. On top of this, government regulations allowed S&Ls to claim assets that had no value, such as community good will toward them, and encouraged bad lending...