We choose between the liberty of market exchanges and the government control of production and distribution. In both cases, we want fewer criminals and losses. In both cases, we want policing, adjudication, and enforcement. Low or no criminality is a free market norm. It is not a norm exclusive to government. We therefore face this question: Which system better controls wrongful behavior and losses? Which system has stronger incentives for people to behave properly? The savings and loan (S & L) industry was a creation of the New Deal, regulated by the Federal Home Loan Bank Board and the Federal … Continue reading The S&L Fraud