A Look at What’s in Store for Business and Workers : It won’t be dull, that’s for sure. The new year will see dramatic changes for U.S. industry and the American worker. Business writers at The Times polled experts on what is likely to happen in 1989. Here is their report. : SAVINGS & LOANS
For an industry pummeled by record losses in 1988, this year almost has to be better for the nation’s 3,100 savings and loans. For starters, there’s hope that the industry’s bankrupt deposit insurance fund, known as the Federal Savings & Loan Insurance Corp., will be bailed out by Congress in 1989. FSLIC’s financial problems have been a curse on the industry for years, driving up deposit costs and driving down stock values.
Second, the worst of the industry losses, which resulted from problem-loan writeoffs in places such as Texas, are probably over. That’s because the worst of the thrifts--about 200 in all--were rescued, recapitalized or reorganized in 1988.
On the other hand, the industry begins the year under a cloud of rising interest rates. Rising rates hurt because they cut into profit margins on fixed-rate assets, such as home loans and mortgage-backed securities.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
