You and a friend are discussing the savings and loan crisis. She states that "the whole mess started in the early 1980s. When short-term rates skyrocketed, S&Ls got killed- their spread income went from positive to negative. They were borrowing short and lending long." a. What does she mean by "borrowing short and lending long"? b. Are higher or lower interest borrows short and lends long?

Answer rating: 100% (QA)

I Meaning The saving and loan SL crisis was a financial disaster which was moving slowly This crisis ... View the full answer