Factors Influencing the Net Social Cost of the S&L Crisis

The estimated costs of resolving the S&L crisis have ranged from 130-500 billion dollars. These appraisals do not include the social cost associated with runs. Furthermore, the social cost attributed to fraud and involuntary unemployment are not fully reflected in these projections. Moreover, these appraisals, in part, reflect wealth transfers. This paper discusses factors which influence the net social cost of the S&L crisis.