Tuesday, September 30, 2008

So apparently we have learned nothing...

...from the last financial crisis.

L. William Seidman, former chairman of both the Federal Deposit Insurance Corporation (FDIC) and the Resolution Trust Corporation, stated, "The banking problems of the '80s and '90s came primarily, but not exclusively, from unsound real estate lending."
For more eerie similarities between the current crisis and the S&L crisis of the late 80s and early 90s, see the Wikipedia article. Main causes: deregulation and imprudent real estate lending. We are doomed to repeat history, since clearly we haven't learned from it.