Posted on 10/26/2011 6:09:05 PM PDT by Kaslin
Government: President Obama wants student loans to be more like student handouts. Too bad he hasn't learned one of the lessons of the 2008 mortgage crisis: Free money costs plenty.
The global financial crisis has its roots in the U.S. government's politicization of mortgages. Washington decided that all those real-life versions of mean old bank president Mr. Potter from "It's a Wonderful Life" shouldn't just turn into big-hearted Jimmy Stewarts.
No, they should practically become welfare officers, doling out money to people with bad credit ratings to buy homes, without requiring a down payment.
And when this pyramid scheme collapsed, the investors who bought the safe-seeming, sliced-and-diced mortgage debt were left holding the bag.
And millions of Americans lost their jobs.
Making a loan of hundreds of thousands of dollars to someone is serious business, but the government for years systematically pressured mortgage lenders with accusations of racism. Many feared the Department of Justice more than the default risk of their debtors.
Now President Obama proposes applying the same mortgage mistakes to student loans.
On a day on which the College Board reported the cost of public colleges rose 8% — about twice the inflation rate — Obama unveiled a student loan forgiveness plan.
(Excerpt) Read more at investors.com ...
Utter idiocy all over that picture.
The school that offered such a program should have its doors shut and the educational entity that approved such a program/curriculum for the university/college should be rendered obsolete. =.=
Apparently not. It would be nice if there were an actual opposition party. Wouldn't it?
Is there any type of loan agreement (contract) signed for these loans? If so, I can see this affecting future loans, but how can a change in policy negate a legal contract?
College is the next bubble.
Universities are overpriced luxuries that convey more bad habits than usable skills for most students. A waste of time, a waste of money.
Universities exist to provide jobs for people who cannot make a living with their hands or their heads.
Under a credit reform act, circa 2005, student loans are NOT dischargable by bankruptcy. One cute trick was for newly minted MD’s and lawyers to turn around and declard bankruptcy. They’d laugh off their pile of loans, rake in the chips and stick it to the suckas.
That image was created as sarcasm. Look at the letters (example, the letter 'a'). They're all exactly the same.
With the way the world is these days, I can see how you took it seriously. The degree in question probably does actually exist. Sad.
The dunderhead Obama really loves to throw away taxpayer dollars, doesn’t he.
Over $1 trillion in student loans outstanding. What is the value today? At least the Greeks will now pay 50% of face. Good luck finding a student loan tomorrow morning...
” - - - one of his early legislative initiatives was to have the federal government take over the student lending business in America. - - - “
Read more: http://www.foxnews.com/politics/2011/10/26/obama-taps-taxpayers-for-student-stimulus/#ixzz1bwQRONcK
By “taking over,” (which illegally reduced competition), Obama became a criminal for violating the 1890 Sherman Anti-Trust Law.
Impeachment of Obama at that time would have saved America from his destructive spending for then on.
The gutless RINO Congressmen and women are equally responsible for Obama’s criminal actions because Congress is the primary Check and Balance on the Presidency as designed by our Founders.
By failing to stop an arrogant, lunatic, debt-greedy, Chief Executive, the current Congressmen and women thus became, and remain so to this day, the enablers to Spendaholic Obama.
This makes me so sick. I worked my butt off during a recession to pay off my student loans, but I did it. That was MY DEBT.
First this moron pitts successful Americans against under and unemployed. Now he’s making damn sure that people who paid back their loans are resentful of younger graduates.
My niece is in grad school, and she tells me that she’s gotten so much $ from the gov’t that she’s got more in the bank than most full time adults. I know she’ll do the right thing, but I remember full well my college days when I had to choose between buying soap or food. It made me a stronger person. I eventually ran my own business successfully, because the company was never in debt.
These loans are syndicated through Sally Mae and sold to investors like your mutual funds, pension funds and stupid Swiss bankers who still think they are undischargeable debt. When they try to sell these bonds, they will find out what they are worth in the market. Not much. Who would lend another penny to a college student? Nobody. Good luck trying to find a student loan tomorrow. The only buyer for this crap is BEN BERNANKE himself. Another trillion out of thin air! BUY GOLD!!!!
The party of evil vs. the party of stupid. Guess which side we are on?
Agreed. But... who, other than the Federal Reserve will buy these new loans? Not me. I like knowing I MIGHT get my money back some day...
Ask General Motors bond holders.
This is what all those Occupy Wallstreet folks are yelping for because their “Remedial Macaroni Art” degree’s are worthless ...
Buying those votes is expensive.
Here's the scam. Universities keep cranking prices knowing that little Johnny will attend college and his parents will do the FAFSA dance and he will borrow whatever it takes to get that precious degree from a Liberal indoctrination camp. The University funds its lavish lifestyle, the government enables the crazy borrowing through Sally Mae and little Johnny ends up a debt serf for the rest of his life paying principal and interest on a non-dischargeable loan that keeps him a working class fool all of his life. SCAM? You Betcha! Until today. in one fell swoop, Obamacommie just boned the greedy capitalists to the tune of $1 trillion in now hard to value student loan paper.
Yeah I don’t get, students loans were just recently made unforgivable (like Congress new everyone was going to go jobless thus broke) and now O’bummer wants to help raise the cost of going to college, like it isn’t high enough already, by letting anyone into higher education.
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