A Note on the Plight of the Thrifts

  • July 22, 1982
  • • Written by: M.C. Findlay R.V. Eastin

Spring/Summer 1982, Vol 7, No 1

Abstract: The efficient market framework of finance is extended to policy issues confronting the thrift industry. The authors contend that the mortgage rate was never subsidized, rate ceilings had limited effectiveness, the thrifts’ portfolio losses are sunk costs, and additional powers are not likely to generate large profits.