Archive for July 28th, 2008

American Dream pt. 3

July 28, 2008

Ronald Reagan, the Gipper, an American hero.

One of the worst presidents ever. Thankfully after GW Bush leaves office people will forget just how bad the Gipper was.

On October 15, the Gipper signed the Garn-St.Germain Act thereby deregulating the thrift industry.

“I think we hit hit the jackpot” he was quoted at the time.

Until the 80s the Savings and Loans banks dealt primarily with mortgages, their traditional customers locals who relied on a banker who knew them. When the Gipper deregulated the industry, the pirates and fraudsters came out from under the rocks and began investing this federally insured money in wild schemes. Hard earned local money went fishing for high risk fast dollars.

Chief among these was a professional Catholic named Charles Keating, a swindler first class who was about to be named Ambassador to the Bahamas by the Gipper. The press resurrected a scandal where Chas had made millions on improper loans. In time Keating who gave Mother Theresa a gift of 1.4 million did heavy time for his swindling activities. Not for nothing was he termed “the greediest man in America” by  the Chicago Tribune—vacation homes everywhere, gold plated fixtures. You name it, Chas had it. In the end Keating did heavy time for rackateering and fraud,

Meanwhile US citizens ponied up $160 billion. Socialism for the rich, capitalism for the poor.

One of Keating’s  biggest backers-John McCain. Though he was not convicted of anything, McCain intervened on behalf of his pal after Keating gave McCain at least $112,00 in contributions. In the mid-1980s, McCain made at least 9 trips on Keating’s airplanes, and 3 of those were to Keating’s luxurious retreat in the Bahamas.

 

Two good old boys who followed the American Dream of the Deregulator, Ronny Reagan.

 

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