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b721184
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The weakest S&L's paid the highest interest rates to attract depositors and they are the ones which obtained the large blocks of brokered funds. Brokers no longer cared how weak the operation was, because the funds were fully insured. They just cared about the interest rate. On the other hand,
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G. Edward Griffin |
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9de54e9
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Deals began to go sour, and 1979 was the first year since the Great Depression of the 1930s that the total net worth of federally insured S&Ls became negative. And that was despite expansion almost everywhere else in the economy. The public began to worry.
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G. Edward Griffin |
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e564500
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Behind the troubled banks and the increasingly troubled insurance agencies stands "the full faith and credit" of the Government--in effect, a promise, sure to be honored by Congress, that all citizens will chip in through taxes or through inflation to make all depositors whole.80"
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G. Edward Griffin |
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205e68a
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The Gam-St. Germain Act allowed the thrifts to lend an amount of money equal to the appraised value of real estate rather than the market value. It wasn't long before appraisers were receiving handsome fees for appraisals that were, to say the least, unrealistic.
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G. Edward Griffin |
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77742b9
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Since the S&Ls were required to have $1 in capital for every $33 held in deposits, an appraisal that exceeded market value by $1 million could be used to pyramid $33 million in deposits from Wall Street brokerage houses. And the anticipated profits from those funds was one of the ways in which the S&Ls were supposed to recoup their losses without the government having to cough up the money--which it didn't have. In effect the government was..
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G. Edward Griffin |
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eede0e7
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LAW: Long-term price stability is possible only when the money supply is based upon the gold (or silver) supply without government interference.
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G. Edward Griffin |
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86bb53a
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They add up to one thing: the building of world socialism.
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G. Edward Griffin |
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7dbe501
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the result will be the expansion of government.
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G. Edward Griffin |
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949b4a3
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So they demonstrate in the streets in protest, they riot in the commercial sections of town so they can steal goods from stores, and they throng to the banner of politicians who promise to restore or increase their benefits.
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G. Edward Griffin |
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9723c1c
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From 1981 to 1991, the average return on ten-year Treasury bills was 10.4 per cent; the Dow Jones Industrial Average was 12.9 per cent; and the average return on so-called junk bonds was 14.1 per cent.
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G. Edward Griffin |
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fc86d66
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Zimbabwe (formerly Rhodesia) is a classic case. After its independence, the leftist government nationalized (confiscated) many of the farms previously owned by white settlers. The most desirable of these lands became occupied by the government's senior ruling-party officials, and the rest were turned into state-run collectives. They were such miserable failures that the workers on these farmlands were, themselves, soon begging for food. Not..
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G. Edward Griffin |
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71c12a4
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Thus, open taxes at some level serve to perpetuate public ignorance which is essential to the success of the scheme. The second reason is that taxes, particularly progressive taxes, are weapons by which elitist social planners can wage war on the middle class.
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G. Edward Griffin |
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e39e835
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Led by Communist organizers, mobs roamed the streets shouting "We're hungry. Steal what you will!" The nation was hopelessly in debt with no way to repay."
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G. Edward Griffin |
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8e6dba6
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And so, when more than 1900 S&L's went belly-up in the Great Depression, Herbert Hoover--and a most willing Congress--created the Federal Home Loan Bank Board to protect depositors in the future.
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G. Edward Griffin |
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d654f2f
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While the Marxists were promising a chicken in every pot, the New Dealers were winning elections by pushing for a house on every lot. In
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G. Edward Griffin |
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f9bcd2e
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the FHA-induced easy credit began to push up the price of houses for the middle class, and that quickly offset any real advantage of the subsidy.
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G. Edward Griffin |