privatizes profits but socializes losses.How does this statement apply to s&l debacle?

Answer 1

Profits are paid to board members, CEO's, stockholders, etc.
But when the S&L goes belly up through poor management with bad investments etc. losses are picked up by taxpayers when the FDIC has insured some of the investors' money. Even though many S&L's are not insured by FDIC, the FEDS still end up picking up the tab which is of course with monies obtained through public tax revenues.

Answer 2

How does this sound? The ceo's kept the profits & each bought themselves several nice little houses to live in, wined & dined themselves in the lap of luxury while jetting from one country to another having themselves little $6 million dollar birthday parties (true) & when all the money from all the investors and savers was all used up & nothing was left........all the little investors and all the little savers had no money no more.....they suffered all the losses.

So the ceo's made the profits private .....and everyone else (society) suffered the losses.

Answer 3

plz explain ur answer