Warning: Utilization of a Thrift Institution May Be Hazardous To Your Wealth

Abstract

The state of thrift institutions in the United States is a tricky affair to analyze. It is no secret that thrift failure has been a great fear of the banking community. Our government has known for years that the thrift market was unstable, draining taxpayer money. Through countless legislative arrangements and rearrangements the government of the United States has created the biggest banking scandal in our country's history. Originating in the late 1920's, thrift institutions were not state or federally regulated, but regulation became a cure-all when these institutions started to fail. Savings and Loan institutions have incurred record losses since the Great Depression era and had deposit insurance not been initiated the thrift industry would have never survived. Yet after decades of Congressional and banking regulation and legislation, the thrift industry continues to falter. Even in changing economic times, when the regulative and legislative trend shifted towards deregulation, thrift institutions could not keep their heads above water. and instead of resolving thrift problems they simply made them worse.