We are a commune of inquiring, skeptical, politically centrist, capitalist, anglophile, traditionalist New England Yankee humans, humanoids, and animals with many interests beyond and above politics. Each of us has had a high-school education (or GED), but all had ADD so didn't pay attention very well, especially the dogs. Each one of us does "try my best to be just like I am," and none of us enjoys working for others, including for Maggie, from whom we receive neither a nickel nor a dime. Freedom from nags, cranks, government, do-gooders, control-freaks and idiots is all that we ask for.
And the unsound real estate lending was propelled by the sheer amount of capital available because of high individual and corporate tax rates at the time.
Every high earner of the day was solicited for investment in limited partnerships investing in real estate and passing along large depreciation expense and other losses in the first few years of the partnership. Most such deals promised to repay the initial investment in four or five years through the resulting tax savings to the high earning professional or business executive.
Many, many apartment buildings and commercial real estate projects were funded because of these tax shelters, and demand for the property was merely incidental to providing cash flow through tax savings. And that overinvestment was further leveraged through Savings and Loan associations, who in turn raised capital through those new-fangled junk bonds pioneered by Drexel Burnham.
Many fun years of collapse and chaos followed. Ah, the good times are back!
I happen to have been acquainted with the president of an S&L and the controller of a federally chartered national bank at the time of the S&L debacle. They pointed their fingers at the repeal of Regulation Q and the revision of the depreciation schedules for commercial real estate.
Barney Frank had predecessors, though as I remember they were not quite as odious.