The S&L Crisis II was the result of the same factors as the S&L CrisisI, namely valuation of property that was not sustainable over time and the use of inaccurate personal data to promote the issuance and subsequent sale of mortgages. Freddie Mac and Fanny May were headed up by people with outstanding credentials and yet both have seen their common stock drop 9% in the last year this makes unlikely that just replacing CEO'S and CFO'S is going to prevent the inevitable S&L Crisis III . At present Attorney General Coumo of NY State is pursuing companies that participated in falsely evaluating property values with a mind to prosecution, unfortunately the damage is done. To protect from false valuation and to some degree the natural swings in the property market it may be necessary to allow banks in the FDIC system to make mortgages up to 80% of the average of the last ten years assessed value. Nothing much can be done about falsification of personal information except to put a lot of people in prisons that are already over crowded at unsustainable cost to the community
