Before the 1986 act, the S&Ls were the primary source of loan capital for local property owners...

 developers and builders. After 1986, 747 institutions with assets of more than $394 billion (about $1 trillion in today’s dollars) collapsed into the federal Resolution Trust Corp. 

When the S&Ls failed, community-based lending and much of the local home-building industry vanished. The fallout was ultimately felt up and down Main Street during the recession of 1990-91.

 Wall Street was the big winner, filling the void left by the S&Ls with commercial mortgage-backed securities, or CMBS. Today, most commercial and multifamily real-estate funding is done by CMBS loans. All major financial institutions—including banks, insurance companies and pension funds—participate heavily in CMBS markets. Consequently, we are all in this together. 

When the CMBS market collapsed in 2008, it plunged the global economy into the Great Recession. Taxpayers funded huge bailouts.

 Without tax incentives, real estate can’t compete with other investments for essential capital. Currently, real-estate professionals get depreciation deductions against taxable income, and long-term capital-gains rates when they sell. 

WSJ 25 October 2021

https://www.wsj.com/articles/democrats-tax-plan-would-sink-real-estate-rates-interest-savings-loans-11635180636


The Savings and Loans Bailout

https://englundmacro.blogspot.com/2021/04/financial-crises-get-triggered-about.html


Over the past 20 years major financial disruptions have taken place roughly every three years Financial crises differ in detail but, just as there are plot cycles common to literary tragedies, they follow a common arc.

Lawrence Summers, Financial Times August 27 2007

https://www.internetional.se/shares.htm#summersaug07



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