Factors that led to the S&L crisis of the 1980s include

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All of these factors contributed to the S&L crisis. S&Ls were encouraged to invest in high-risk real estate ventures, some of which turned out to be frauds. S&Ls also invested in junk bonds, which turned out to be high-risk investments that led to significant losses. Additionally, perverse incentives created by government insurance on S&L deposits encouraged S&Ls to take on excessive risks in order to earn higher returns.

Factors That Led to the S&L Crisis of the 1980s