Which was more costly, the current mortgage crisis OR the losses incurred during the Savings and Loan scandal?

Deal Score0

Also, can anyone toss in S&L numbers adjusted for inflation?

If not, no big deal.

I have a Pick-A-Payment Mortgage Loan with now Wachovia that a Mortgage Broker had set us up with in 2003/2004. I learned that I’m a class B and will receive benefit from a Class Action Settlement. Should I sue the Broker for putting me in this type of mortgage, stay as part of the class action lawsuit and hopefully get whatever $ benefit; or opt out of the class action lawsuit and get my own Real Estate Attorney? My current mortgage increases each month because of the deferred interest. I can only afford the minimum payment (Interest due, less deferred intest, paid escrow, interest due) that pays for no principal but only the interest. We were denied HAMP three times; we were told we should now attempt the Mortgage Assistance Program 2 (MAP2R) next. Thank you in advance…

14 Comments
  1. Reply
    Shovel Ready
    February 24, 2011 at 7:14 am

    No comparison – orders of magnitude difference.

  2. Reply
    Wes
    February 24, 2011 at 7:59 am

    our loss is all that really matters now…. they can crunch numbers all they wish …..as may you…. but the facts are we have been robbed no matter how it’s sliced

  3. Reply
    zaza
    February 24, 2011 at 8:15 am

    Even with inflation times ten it would not even come close to this. I think it was in the 200 Billion dollar range.

  4. Reply
    Poohcat1
    February 24, 2011 at 9:11 am

    Based on what I remember, I would say that this one is worse. It has affected more of the economy long term. The S&L scandal kicked the heck out of the markets too, but were simpler to fix. This covers so many different areas of graft, dishonesty, greed etc. that were not as much of an issue then.

  5. Reply
    dino003
    February 24, 2011 at 9:19 am

    The AIG scam and city bank group scam

  6. Reply
    Pro Con
    February 24, 2011 at 10:11 am

    The cost of the S&L bailout was about $ 160 billion, early ’90s money. I’ll leave it to you if you need it in 2009 dollars.

    I often see the figure of 2 trillion bandied about as the magic number to fix this one. No one really knows for certain.

    By my calculations, we’ve already exceeded that number.

    Feb ’08 stimulus: 168B
    Fannie/Freddie: 400B
    AIG: 150B
    Tarp A: 350B includes auto co.s
    Tarp B: 350B
    Obama stimulus: 787B
    Housing Plan: 75B
    AIG additional: 30B
    Doesn’t that add up to 2.33 trillion?

    Sigh…

    Is it possible we are spending money that really isn’t directed at solving this problem and instead promoting agendas?

  7. Reply
    david v
    February 24, 2011 at 10:48 am

    According to Time magazine Freddie is about to dip into the trough with their 50 billion in losses last year that is going to cost the Federal government another 150 billion minimum to bail out. Its a darn good thing Freddie and Fannie didnt need that oversight the Dems fought so hard to keep away!

    BTW yes i consider the Republicans just as guilty on this as the Dems. They sat by and watched after being bought off but it was the Dems that forced this one us.

  8. Reply
    smartybeardo
    February 24, 2011 at 11:47 am

    The savings and loan crisis of the 80s spawned the current global economic chaos. The derivatives created to soften the economic impact of the S&L crisis were not meant to be cut loose in an unregulated market. They are the dna of the false economy.

  9. Reply
    beth l
    February 24, 2011 at 12:38 pm

    I think if you add up all the money spent on stupid government “inquiries” that will be more than either of those.

    For example:
    The Kennedy Assassination
    Water Gate
    The Starr report
    The investigation into why the Towers collapsed (duh)
    The investigation into the banking failures…(too late)
    Madoff (again too late)

    All of these are worth while but too late (banking), going on too long (kennedy, and the Towers took 2 yrs!), no one “pays” for the crime (water gate, starr investigations) so what is the point? It is all just wasted money.

  10. Reply
    blibityblabity
    February 24, 2011 at 1:25 pm

    One thing this current economic crisis has taught me is that people are idiots. The S&L thing was a minor problem that caused panic. People don’t understand what is really going on in the financial world, yet they bank their whole life savings on it. Of course the housing market is going to fail, when the real money has insurance on it failing 4 times over. They want it to fail. They made their money, and now they are waiting for the markets to reestablish themselves, and then they will throw their money back in the kitty, and the world will operate again.

  11. Reply
    imaxkr
    February 24, 2011 at 1:47 pm

    The country actually eventually made money on the S&L scandal.
    In this current ‘crisis’ money is being spent that will never be seen again. (by the tax payer at least)
    AIG alone has already received more funds than the government committed during the S&L crisis.

  12. Reply
    rayda1946
    February 24, 2011 at 2:02 pm

    both are tiny compared to the mess OBOMA has us in and is dragging us deeper in we will be paying for this thru all the 2000’s if we don’t get killed by enemy immigrants

  13. Reply
    smsmith500
    February 24, 2011 at 2:40 pm

    In my view the current mortgage crisis is far more costly in human terms than the S+L scandal.

  14. Reply
    NICK .
    February 24, 2011 at 3:10 pm

    Hi The Banks sold us a BILL OF GOODS.YOUR broker had no choice in this Matter that’s why The BANK,ALL BANKS WILL BE LIABLE That SOLD the pick a pay Loan…This products the Banks offered where assimilated at the lowest payment to the buyer income. WRONG>>>But the banks knew this product was going to blow up in or face…When I sold this product Wachovia could not care less who qualified as long as you had a pulse, you had a loan……………..They knew these pick a pay loans were going to blow up in our face . Don’t trust your Bank ….

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