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 ...
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.”
The entire Federal Government is nothing but a massive ongoing accounting fraud.
bttt
Actually that is not true.
Illegal acts, mistakes and errors are not precedents. they are illegal acts, mistakes, and errors.
The never use the word NET savings. They don’t see things as systems...................
This is just another one of those “shovel ready” projects.
Where did it all go?
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.
"10th Amendment: The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people."
"In discussion and decision, the point of reference, instead of being what was "necessary and proper" to the exercise by Congress of its granted power, was often some concept [???] of sovereignty thought to be implicit [??? emphases added] in the status of statehood." —Wickard v. Filburn, 1942
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!)
"The “Holy Grail” of organized crime is to control government power to tax." —me
"The constitutionally undefined political parties are basically rival, corrupt voter unions, “union dues” paid by means of unconstitutional federal taxes.” —me
"The smart crooks long ago figured out that getting themselves elected to federal office to make unconstitutional tax laws to fill their pockets is a much easier way to make a living than robbing banks." —me
"Federal career lawmakers probably laugh all the way to the bank to deposit bribes for putting loopholes for the rich and corporations in tax appropriations laws, Congress actually not having the express constitutional authority to make most appropriations laws where domestic policy is concerned. Such laws are based on stolen state powers and uniquely associated stolen state revenues." —me
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.
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.
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)
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.
“No Scandals”
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!!!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.