Glen Contrarian
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https://en.wikipedia.org/wiki/Early_1980s_recession
Boom.
My point is that we were in the position of either aiding "the devil that we knew" or allowing these nations to fall into the hands of the communists. It is no secret who people like Daniel Ortega were getting their direction and support from. We had an official policy of stopping the spread of communism. Adhering to that policy got very messy and ugly at times.
From the same reference:
In July 1982, Congress enacted the Garn–St. Germain Depository Institutions Act of 1982 (Garn–St. Germain), which further deregulated banks as well as deregulating savings and loans. The Garn–St. Germain act authorized banks to begin offering money market accounts in an attempt to encourage deposit in-flows, removed additional statutory restrictions in real estate lending, and relaxed loans-to-one-borrower limits. The legislation encouraged a rapid expansion in real estate lending at a time when the real estate market was collapsing, increased the unhealthy competition between banks and savings and loans, and encouraged overbuilding of branches.[16]
The recession affected the banking industry long after the economic downturn technically ended in November 1982. In 1983, another 50 banks failed. The Federal Deposit Insurance Corporation (FDIC) listed another 540 banks as "problem banks" on the verge of failure.[18]
and
Congressional deregulation exacerbated the S&L crisis. The Economic Recovery Tax Act of 1981 led to a boom in commercial real estate. The passage of DIDMCA and the Garn–St. Germain Act expanded the authority of federally chartered S&Ls to make acquisition, development, and construction real estate loans and eliminated the statutory limit on loan-to-value ratios. These changes allowed S&Ls to make high-risk loans to developers. Beginning in 1982, many S&Ls rapidly shifted away from traditional home mortgage financing and into new, high-risk investment activities such as casinos, fast-food franchises, ski resorts, junk bonds, arbitrage schemes, and derivative instruments.[16]
Federal deregulation also encouraged state legislatures to deregulate state-chartered S&Ls. Unfortunately, many of the states that deregulated S&Ls were also soft on supervision and enforcement. In some cases, state-chartered S&Ls had close political ties to elected officials and state regulators, which further weakened oversight.
The above laws were passed under Reagan, and you can see what happened as a direct result. Like I said before, Reagan bears some of the blame.
And having a national policy of "stopping communism" doesn't by any means excuse everything we did...because some things that we did made things worse instead of better. Perhaps the best example is our overthrow of the democratically-elected government of Iran back in the early 1950's and the installation of the U.S.-friendly Shah Reza Pahlavi. That had a lot to do with the hostage crisis under Carter, and is still biting us today. And why did we overthrow that democratically-elected government? Because they were going to nationalize their oil production, and Big Oil wanted to keep our oil fields there. Yeah, "stopping communism".