Lone Star Bailout and
Ireland's Big Mistake
Just after the S&L bailout I was in Texas playing golf. A friend of mine who is in commercial real estate took us over to Padre Island to look around. We went up to a penthouse apartment that was once owned by a prominent Texas politician. The politician had taken out a $1.5 million loan to buy the property, which was on the market at that point for $250,000. $1.25 million up in smoke. Sound familiar? As the two articles above indicate, Texas was the worse financial sector abuser during the 80s. That's why there are almost no locally owned large financial institutions in the state. They all failed and were bought up by out-of-state companies.
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