How did high interest rates affect savings and loans (S& Ls) in the 1980s?

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Spence

Advanced Placement (AP)

29 March, 10:33

How did high interest rates affect savings and loans (S& Ls) in the 1980s?

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Alessandro Morton · Answer 1

S&L's were affected because interest rates increased. When the interest rates increased, loans were not being approved thus becoming insolvent. This is what also caused the Poison scheme.