Bravo
Rush...ah..I mean
Russ!
I was in a management position in a small business during the eighties. It didn't do well because of the shortsidedness of the owners. I lost that job, fired, for telling them the truth. I'll take the blame myself and not blame it on Reagan.
Short lesson on the Savings and Loan Scandal. Reagan demanded a lower tax rate. At the time ALL real estate investment interest was tax deductible. Billions were invested because of the deduction. Deregulation of Savings and Loans was meant to allow them to invest where only banks could before. Competition served to keep interest rates lower. This led to the Real Estate boom of the eighties. Many homeowners found the value of their property doubling because of the demand.The Democrats made a deal with Reagan. If you reduce the Capitol Gains, we want to eliminate the real estate deduction. No one could forsee what happened next. The deduction, except for a Primary Residence, was eliminated. This effectively killed the boom! Not only did it die, investors took billions out of the Real Estate Market seeking to invest elsewhere.
So here are thousands of building projects with money borrowed against what it would be worth after completion, except now the project will be worth less than it cost to build! So the projects came to a screeching halt because the money had dried up. If the project were never completed, all money spent to that point was a total loss.
Now some of the more unscrupules Savings and Loans had claimed that the project would be worth much more than it would. If the boom had continued and property continued to climb in value they may never have been caught. Over Speculation is illegal.
All these doings were with 'FDIC insured ' money, so the TaxPayer footed the bill. The Crooks were all prosecuted as well. Of course, the story is much deeper than I address here, but 'in a nutshell' that is how we got the 'Saving and Loan Crisis.'
Just another instance where increasing taxes cause less economic activity.
Unless the Oil situation is resolved quickly, and I'm sure it won't be, we are headed into a drastic slow down in the economy. Whoever is President will get the blame as Americans are very ignorant of the causes and effects of our system...just like many members here.
How he handles it will define our future.
Old enough to remember the facts!