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Did the Obama administration commit 'the biggest accounting fraud in history' with student loans?
yahoo.com ^ | September 5, 2019 | Aarthi Swaminathan

Posted on 09/05/2019 9:44:31 AM PDT by grundle

Full title: Did the Obama administration commit 'the biggest accounting fraud in history' with student loans? Experts weigh in

The Wall Street Journal’s editorial board (WSJ) recently accused the Obama administration of pulling off “the biggest accounting fraud in history” with student loans when eliminating the role of private lenders in the federal student lending market.

Experts who spoke with Yahoo Finance acknowledged the issue with the general policy in hindsight, though they disagreed on who exactly is to blame.

In 2010, Democrats “nationalized the market to help pay for Obama Care,” WSJ asserted. “The Congressional Budget Office at the time forecast that eliminating private lenders would save taxpayers $58 billion over 10 years. This estimate was pure fantasy, and now we’re seeing how much.”

The WSJ op-ed also highlighted the rising number of severely delinquent student loans since then and blamed the Obama administration for expanding plans in 2012 for new borrowers “to reduce defaults, buy off millennial voters and disguise the cost of its student-loan takeover.”

The editorial board then added: “This may be the biggest accounting fraud in history.”

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Miscellaneous
KEYWORDS: bho44; corruptdems; fraud; studentloans
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To: grundle

Per the article

“WSJ argued that eliminating private lenders from the student loan market severely hurt Americans and that by using fair-market accounting, it becomes clear that student loans will actually cost taxpayers nearly $307 billion over the next 10 years.”


21 posted on 09/05/2019 10:43:33 AM PDT by tired&retired (Blessings)
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To: grundle

The entire Federal Government is nothing but a massive ongoing accounting fraud.


22 posted on 09/05/2019 10:52:58 AM PDT by Buckeye McFrog (Patrick Henry would have been an anti-vaxxer.)
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To: grundle

bttt


23 posted on 09/05/2019 10:54:23 AM PDT by Pajamajan ( Pray for our nation. Thank the Lord for everything you have. Don't wait. Do it today.)
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To: Karma_Sherab

Actually that is not true.

Illegal acts, mistakes and errors are not precedents. they are illegal acts, mistakes, and errors.


24 posted on 09/05/2019 10:56:20 AM PDT by Secret Agent Man (Gone Galt; Not Averse to Going Bronson.)
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To: grundle

The never use the word NET savings. They don’t see things as systems...................


25 posted on 09/05/2019 10:58:47 AM PDT by PeterPrinciple (Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)
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To: grundle

This is just another one of those “shovel ready” projects.

Where did it all go?


26 posted on 09/05/2019 11:00:45 AM PDT by PeterPrinciple (Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)
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To: raybbr
I believe they tied the student loans to ACA so that in years to come they would force those with debt to work for the government.

You may be on to something there. An NHS-style health system would be dependent on a supply of doctors and nurses who were willing to work for pedestrian salaries.


27 posted on 09/05/2019 11:01:08 AM PDT by Buckeye McFrog (Patrick Henry would have been an anti-vaxxer.)
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To: grundle; All
"Did the Obama administration commit 'the biggest accounting fraud in history' with student loans?"
FR: Never Accept the Premise of Your Opponent’s Argument

I know that patriots like to blame Obama for lots of things. But in the example of student loans, he had some help from the corrupt, post-17th Amendment ratification, post-FDR era Congress, especially since the Founding States gave the "power of the purse" (1.7.1) uniquely to the House of Representatives.

In the example of this thread, lawless Obama was wrong to eliminate the role of private lenders since the states have never expressly constitutionally given Congress banking powers. This is evidenced by the following excerpt from the writings of Thomas Jefferson when he explained that the delegates to the Constitutional Convention had considered giving banking powers to Congress, but had decided against it.

“A proposition was made to them to authorize Congress to open canals, and an amendatory one to empower them to incorporate. But the whole was rejected, and one of the reasons for rejection urged in debate was, that then they would have a power to erect a bank, which would render the great cities, where there were prejudices and jealousies on the subject, adverse to the reception of the Constitution [emphasis added].” —Jefferson’s Opinion on the Constitutionality of a National Bank : 1791.

Jefferson had also officially indicated that the states would first need to appropriately amend the Constitution to give Congress the express power to stick its big nose (my wording) into the affairs of INTRAstate schools before Congress could do so, something that the states have never done.

On a few articles of more general and necessary use, the suppression in due season will doubtless be right, but the great mass of the articles on which impost is paid is foreign luxuries, purchased by those only who are rich enough to afford themselves the use of them. Their patriotism would certainly prefer its continuance and application to the great purposes of the public education, roads, rivers, canals, and such other objects of public improvement as it may be thought proper to add to the constitutional enumeration of federal powers [emphases added].”—Thomas Jefferson : Sixth Annual Message to Congress

Justice Joseph Story had likewise indicated that intrastate schooling was constitutionally hands-off to the feds.

"The power to regulate manufactures, not having been confided to congress, they have no more right to act upon it, than they have to interfere with the systems of education, the poor laws, or the road laws, of the states [emphases added]. Congress is empowered to lay taxes for revenue, it is true; but there is no power to encourage, protect, or meddle with manufactures." —Joseph Story, Article 1, Section 8, Clause 1, Commentaries on the Constitution 2

The main reason that the feds have been able to steal so many state powers in the last 70+ years is this imo. Using inappropriate words like "concept" and "implicit" here is what was left of unique, 10A-protected powers of the states to serve the people after FDR’s state sovereignty-ignoring, activist majority justices got finished with it in Wickard v. Filburn.

The remedy for unconstitutionally big federal government on our backs…

Patriots need to elect a new patriot Congress in the 2020 elections that will not only promise to support PDJT's vision for MAGA, now KAG, but will also do this.

The new Congress also need to promise to surrender state powers that the feds have been stealing from the states back to the states.

And to make such changes permanent, patriots also need to support PDJT in leading the states to repeal the 16th and ill-conceived 17th Amendments.

Remember in November 2020!

MAGA! Now KAG! (Keep America Great!)


28 posted on 09/05/2019 11:02:08 AM PDT by Amendment10
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To: thoughtomator

The fraudulent part of the asset values is not actually an asset, that was the problem there... as tens of millions of American home”owners” learned the hard way, by going underwater.


We have very little asset/profit management today whether in govt or buisness or person.

It is cash flow mgt. If I can borrow it, I will spend it. Do i have money left on the cc account?

We are spending the wealth earned by prior and future generations.


29 posted on 09/05/2019 11:03:26 AM PDT by PeterPrinciple (Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)
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To: grundle

History of student loans

NDSL - National DEFENSE Student Loans (war years for appeasement and deferrals)

NDSL - National DIRECT Student Loans (rats)

Then converted to banks, (pubs)

Then converted to govt again. (rats)


30 posted on 09/05/2019 11:07:33 AM PDT by PeterPrinciple (Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)
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To: grundle
Democrats want to Nationalize Education

Democrats want to Nationalize several kinds of Debt

Democrats want to Nationalize anything that "affects the Climate"

Democrats want to Nationalize Health Care

Democrats want to Nationalize Abortion laws

Democrats want to Nationalize College Loans

but they damn sure want to Internationalize our Borders.

31 posted on 09/05/2019 11:14:43 AM PDT by Teacher317 (We have now sunk to a depth at which restatement of the obvious is the first duty of intelligent men)
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To: grundle

“No Scandals”


32 posted on 09/05/2019 12:12:00 PM PDT by silverleaf (Age Takes a Toll: Please Have Exact Chan)
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To: Chickensoup

It did and this is a story that needs to get out to students and millenials and gen zs

Very important for them to know how leftists screwed them.
______________________________________

Agree!!!


33 posted on 10/04/2019 12:06:24 PM PDT by Freedom56v2
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