Abstract
The savings and loan bailout is the largest corporate welfare program since the Great Depression. Individual and corporate taxpayers in thirty-seven states and the District of Columbia will be shipping vast sums of money to thirteen states over the next thirty years as a result. In doing so, the asset base of those states will be protected and a free-fall in the value of commercial and residential real estate will be prevented. Bailout funds will be cycled through the federal government, so that the flow will not be immediately visible; but it will be taking place. No reasonable person can argue against protecting the money of thrift depositors. The federal government promised to protect savings and checking accounts during the Great Depression, and the American public holds that promise to be sacred; breaking it endangers our faith in the banking system. At the same time, we should recognize that the bailout will be costly and will trigger a massive transfer of wealth between the states. Three
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