1981-1995

  • Tax reform

    Tax reform act of 1981: Helped encourage real estate investment.
  • Recession

    Recession of 1982: jobs were lost and the economy went bad.
  • International Lending Supervision Act

    International Lending Supervision Act of 1983: This act regulates the banks to make sure they have adequate capital levels.
  • GDP, unemployment rate, and inflation rate

    The GDP was 7.2% in 1984, unemployment was 7.3%, and inflation was 3.9%.
  • Federal fund rates

    10.5%
    Raised rates again
  • Federal fund rates

    11.75%
    Raised from March to August
  • Federal fund rates

    10%
    Began lowering again
  • Federal fund rates

    8.25%
    Lowered from September to December
  • Banks failed

    100 banks failed in 1985
  • Congress rejects recapitalization

  • Tax Reform Act of 1986

  • Banks failure

  • GDP, unemployment rate, and inflation rate

    The GDP was 3.5% in 1986, unemployment was 6.6%, and inflation was 1.1%.
  • GDP, unemployment rate, and inflation rate

    In 1987, the gross domestic product (GDP) was 3.5 percent, unemployment was 5.7 percent, and inflation was 4.4 percent.
  • Banks failure

  • FSLIC & Federal Reserve Board

  • Dow Jones Industrial Average and S&L

  • Black Monday crash

    In 1987 alone, the stock market increased by 43 percent, hitting a high of 2,746.65 on August 25, 1987. Until Oct. 2, it remained in a slightly lower trading range. Then it started to plummet precipitously. In the two weeks leading up to Black Monday, it fell 15%.
  • FSLIC

  • GDP, unemployment rate, and inflation rate

    In 1988, the gross domestic product (GDP) was 4.2 percent, unemployment was 5.3 percent, and inflation was 4.4 percent
  • Banking industry & Basel Capital Accord

  • Federal fund rates

    On February 10, the federal fund rates were continuing to decrease.
  • Federal fund rates increases

    On March 29, the federal funds began to raise in the hope to fight inflation.
  • GDP, unemployment rate, and inflation rate

    In 1989, the gross domestic product (GDP) was 3.7 percent, unemployment was 5.4 percent, and inflation was 4.6 percent.
  • After effect of Cold war

    The end of the Cold War brings the US economy a so-called peace dividend.
    The Berlin Wall “comes down."
  • Texas

  • S&L

    More than 1,000 of the country's savings and loans had collapsed by 1989. A total of $160 billion was spent on the crisis. Taxpayers paid $132 billion, with the remainder going to the S&L industry. Before going bankrupt, the Federal Savings and Loan Insurance Corporation charged $20 billion to depositors of failed S&Ls. S&Ls is covered by state-run funds in excess of 500. Before collapsing, their failures cost $185 million.
  • Lincoln Savings and Loan

    With $5.5 billion in cash, Lincoln Savings and Loan in California, fails.
  • Charles Keating

    The director, Charles Keating, is being investigated for investing rules violations. Political sway has been suggested.
  • The nine-month contraction

    From July 1990 to March 1991, there was a nine-month contraction. The savings and loan crisis of 1989, higher interest rates, and Iraq's invasion of Kuwait all contributed to it. In Q4 1990, GDP was -3.6 percent, and in Q1 1991, it was -1.9 percent.
  • FDIC

  • GDP, unemployment rate, and inflation rate

    In 1990, the gross domestic product (GDP) was 1.9 percent, unemployment was 6.3 percent, and inflation was 6.1 percent.
  • Federal fund rates & mutual funds

  • S&L

    315 failed S&Ls are resolved by the RTC.
  • Iraq's aftermath on the U.S.

    Iraq invades Kuwait, and the United States and Iraq go to war, resulting in higher oil prices, lower consumption, and lower demand.
  • End of the recession

    March 1990
  • The Gulf War

    (Jan 17, 1991 – Feb 28, 1991) Cause: response to Iraq's invasion and annexation of Kuwait arising from oil pricing and production disputes
  • Unemployment rises

    (June) Job losses and unemployment rise and peaked 7.8%
  • bank failure

    41 FDIC-insured banks fail, the lowest number of failures in 12 years.
  • New earning record

    In 1994, banks set a new earnings record, with reported net income of $44.7 billion. The North American Free Trade Agreement links the U.S., Canada, and Mexico into free trade, eliminating some tariffs and phasing out others. Banks invest $19 billion in technology while mergers and consolidations in the banking industry continue to increase.
  • FDIC lowers prices and lunches public website

    In 1995, The RTC sunsets. Over its 6 1/2 years of existence, the RTC resolves 747 S&Ls with $403 billion in assets at a cost of $160 billion to the taxpayer. The FDIC lowers insurance premiums on July 1. The FDIC launches its first public website in March.