Deposit insurance indirectly helped to create the savings and loan crisis in the United States because

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Deposit insurance gave depositors a false sense of security, leading them to not be concerned with the types of investments made by the savings and loans where they deposited their money. Meanwhile, savings and loans aggressively invested in risky projects, in part because they believed they had the backing of deposit insurance. As a result, when many of these investments failed, the savings and loans were left with significant losses that were ultimately absorbed by the government, leading to the savings and loan crisis.

Deposit Insurance Indirectly Helped to Create the Savings and Loan