European Stars and Stripes (Newspaper) - September 22, 1990, Darmstadt, Hesse                                A a the bailout Parachute not included by Scott Mccartney associated press Jean Shoults was careful to pick a stable neighbourhood with solid Home values when she moved her family to Arlington Texas two years ago. But a single government decision May Cost her $25,000 in Home equity. You think you re buying the american dream and it turns into a Nightmare Quot Shoults said. Quot we Are savings and loan  she a not alone. Across the United states More and More people Are finding they too Are a amp a victims. Small businesses can t find Loans. Subcontractors get stiffed on payments. Real estate markets Are in ruins neighbourhoods tied up in government red tape. Home buyers like Judy and Dave Crenshaw in Colorado Springs colo., Battle through three mortgage companies and lose out on one Home before finally getting a Deal approved. You would t expect a Small Phoenix Gold and jewelry store to be affected by the a amp a debacle or a Small advertising Agency to end up a victim. But the a amp a mess has forced its Way onto main Street. It has eliminated jobs crushed real estate values and weakened an already weak Economy by crimping lending. All this before the tax bite estimated at about $20 per family each month Over the next 30 years. A it s catching up to us quickly Quot said David Wyss chief financial economist at Dri Mcgraw Hill. Quot people Are beginning to see More and More that we re All  for years the crisis had Little Impact for millions of americans because Federal Deposit insurance protected their accounts at savings Banks shielding main Street from the $500 billion fiasco. Now however changes made by Congress and regulators along with the restructuring of the Industry Are affecting the Economy contributing to the nation s credit crunch Quot and possibly helping push a sluggish . Economy closer to recession economists say. The construction Industry which is struggling nationwide is particularly hard hit by problems associated with a amp is which traditionally have been the chief source of financing for Home building. Demand is Down but changes ordered by regulators also have helped curb building Loans and analysts say Banks and a amp is Are reluctant to make any real estate loan that might be labelled risky by regulators. Quot builders live on credit Quot said Dean Crist research economist for the National association of Home builders. Quot so what this has done is Cut them off  that sets off a Chain reaction that ends on main Street. The a amp a mess we re All victims Jean Shoulte with her husband Randy in front of their House in Arlington Texas Tande to Loae $25,000 in Home equity. Saturday september 22,1990 a Home buyers say they be had a Tough time finding financing and Sellers have been battered by the Lack of buyers. The huge amount of empty real estate has depressed prices. Spring Valley construction found itself an inadvertent victim of the a amp a mess. The company built much of Stonebridge ranch a giants amp a financed development North of Dallas. When the a amp a went bust Spring Valley still was owed several Hundred thousand dollars for work it already had done. Quot we Don t get paid so our subcontractors done to get paid. It ends up with the Guy that works for a living Quot Jim Duffy Stonebridge a vice president of operations the a amp a crisis is impacting in Many other ways a Joan Leff gets teary thinking about her future she too is a victim a but she s More a victim of the risk taking of High flying a amp a executives unleashed by the deregulation of the Industry. Leff an office manager at a California retirement Home took All the Money she had a $90,000 from a divorce settlement a to a local savings Bank Lincoln savings amp loan of Irvine calif., to buy a certificate of Deposit that would give her monthly interest to help pay her rent. Instead a Salesman talked her into a Bond that paid slightly higher interest. Leff thought the Bond was Safe and insured just like a cd. It was t. The Bond turned out to be a junk Bond in Lincoln s Parent company american Continental corp. American Continental defaulted on the Bonds which have been basically worthless since april 1989. Some 22,000 investors most in California bought $250 million Worth of them. Investors in Illinois and other states have similar complaints about others amp is. Unable to pay her rent Leff moved into a cheap one bedroom apartment where she still lives. Quot the loss was almost worse than the loss of my marriage Quot she said. Bondholders and the state of California have sued american Continental and its former chairman Charles h. Keating jr., claiming fraud in the Bond sales. American Continental and Keating have denied any wrongdoing. Keating was indicted sept. 18 on criminal fraud charges and held on $5 million bail. The 42-count state indictment charged Keating and three other people with securities fraud and with lying to the California Agency that approved the Sale of the securities at branches of the failed Lincoln savings amp loan. The government seized the Thrift in april 1989, and regulators estimate the bailout could Cost taxpayers $2 billion. But Leff finds Little Comfort in any lawsuit. Quot its not like i invested in Penny stocks or pork bellies continued on Page 14 the stars and stripes a a a Page 13