q explain the causes of the us savings and, International Economics

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q explain the causes of the us savings and

Q. Explain the causes of the U.S. Savings and Loans crisis of the early 1980s.

Answer: On the one hand permitting S&L to make a lot riskier loans for instance loans on commercial real estate. On the other hand insufficient examination for the new situation and depositors together with increase in interest rates due to increased inflation rate.

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